J K Lakshmi Cement
BSE SENSEX
33,034
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,225
JKLC IN
117.7
52.1 / 0.8
514 / 253
12/-25/-17
60.0
54.1
13 November 2017
2QFY18 Results Update | Sector: Cement
CMP: INR439
n
TP: INR512 (+16%)
Buy
EBITDA beat led by higher-than-estimated realization
Healthy realization in Gujarat market:
JKLC’s volume increased 10% YoY
(-17% QoQ) to 1.89mt (est. of 1.92mt), as capacity expansion led to strong
volume growth in east. Realization rose 8% YoY (+4% QoQ) to INR4,109 (est.
of INR3,814), led by healthy pricing in Gujarat markets and supported by a
change in commercial terms. Revenue grew 18% YoY (-14% QoQ) to INR7.7b
(est. of INR7.3b), while EBITDA increased 2% YoY (-21% QoQ) to INR954m
(margin: 12.3%; -2pp YoY, -1pp QoQ) v/s our estimate of INR688m,
translating into EBITDA/ton of INR505 (-INR40/t YoY, -INR22/t QoQ;
estimates of INR358/t). Net profit stood at INR132m (-47% YoY) v/s
estimate of a loss of INR107m due to higher-than-estimated EBITDA.
Cost push dents profitability:
Unitary cost per tonne for JKLC increased 10%
YoY (+5% QoQ) due to higher petcoke prices. Freight cost/t increased 16%
QoQ to INR1,082 due to a change in commercial terms. The increase in road
freight rates was partially negated by a decline in lead distance.
Management commentary:
1)
JKLC’s north volume rose 6% YoY to 1.45mt,
while east volume was up 27% YoY to 0.445mt in 2QFY18.
2)
EBITDA/t
differential between north and east is around INR400/t (INR300/t due to
cost differential and realization difference of INR100/t). 3) Commissioning
of WHRS and thermal power plant in east should reduce cost by INR250/t
for the region. 4) OPC is 41%, PPC is 55% and slag is 5% of overall volumes.
Market mix favorable:
We remain positive on JKLC due to its higher
exposure to north/central markets, which we believe are likely to see
highest realization increase due to utilization improvement. However, a
turnaround in east operations would be a key monitorable. The stock trades
at 9.5x/7.6x FY19E/FY20E EV/EBITDA, and USD76/70 per ton on FY19/FY20
capacity. We value JKLC at EV of 9x FY20 EV/EBITDA (implied EV of USD 80
on FY20 capacity), translating to INR512/share. Maintain
Buy.
1Q
2.29
8.0
3,944
7.4
11.7
9,011
15.9
1,203
13.4
439
492
102
374
91
24.4
283
-1.2
3.1
FY18
FY17 FY18E
2Q
3QE
4QE
1.89
2.02
2.41
7.97
8.61
10.0
10.0
5.5
8.7
8.0
4,109 4,259 4,379
3,651
4,176
7.7
16.9
24.0
2.2
14.4
4.2
3.7
2.8
7,767 8,624 10,550 29,104 35,952
18.5
28.6
30.8
11.1
23.5
954 1,166 1,664
3,654
4,988
12.3
13.5
15.8
12.6
13.9
447
440
437
1,724
1,763
489
450
438
1,887
1,869
169
100
57
698
428
188
376
846
742
1,785
56
75
135
(77)
357
29.6
20.0
15.9
-10.4
20.0
132
301
712
819
1,428
-46.9 295.9 242.9 -1,694.8
74.3
1.7
3.5
6.7
2.8
4.0
(INR Million)
2QE Var (%)
1.92
-2
11.0
3,814
8
0.6
-3.3
7,320
6
11.7
688
39
9.4
440
471
100
-123
-253
-16
12.8
-107
-143.0
-1.5
Financials & Valuations (INR b)
2018E
2019E
Y/E Mar
36.0
40.5
Net Sales
5.0
6.4
EBITDA
1.4
2.2
PAT
12.1
19.1
EPS (INR)
74.3
57.2
Gr. (%)
128.4
146.2
BV/Sh (INR)
9.9
13.9
RoE (%)
8.1
9.5
RoCE (%)
36.0
40.5
P/E (x)
5.0
6.4
P/BV (x)
2020E
45.8
7.4
3.0
25.2
32.3
170.3
15.9
11.5
45.8
7.4
n
n
Estimate change
TP change
Rating change
n
Quarterly performance
Y/E March
Sales Dispatches (m ton)
YoY Change (%)
Realization (INR/ton)
YoY Change (%)
QoQ Change (%)
Net Sales
YoY Change (%)
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Adj PAT
YoY Change (%)
Margins (%)
E: MOSL Estimates
1Q
2.12
27.9
3,673
2.9
7.7
7,772
31.6
1,175
15.1
412
463
104
404
118
29.1
286
-244.1
3.7
FY17
2Q
3Q
4Q
1.72
1.84
2.28
-1.7
4.0
6.0
3,816 3,645 3,531
3.3
-0.5
3.5
3.9
-4.5
-3.1
6,556 6,709 8,067
1.5
3.5
9.7
937
826
716
14.3
12.3
8.9
412
443
457
471
486
466
179
152
263
233
49
55
-16
-27
-152
-6.8
-54.5 -274.5
249
76
207
-545.5 -1,433.3 -19.8
3.8
1.1
2.6
Abhishek Ghosh – Research analyst
(Abhishek.Ghosh@MotilalOswal.com); +91 22 3982 5436
Pradnya Ganar – Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 3980 4322
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

J K Lakshmi Cement
Exhibit 1:
Volume improved by 10% YoY
Volume (mt)
Growth (%)
Exhibit 2: Realizations increased QoQ by 4% (INR/ton)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3: OPM decreased 2pp YoY
EBITDA (INR m)
Margin (%)
Exhibit 4: Trend in EBITDA/ton (INR/t)
Source: MOSL, Company
Source: MOSL, Company
Exhibit 5: Key performance indicator
INR/Ton
Net realization
Expenditure
RM Cost
Employee Expenses
Power, Oil & Fuel
Freight
Other Expenses
Total Expenses
EBITDA
2QFY18
4,110
873
318
950
1,083
381
3,605
505
2QFY17
3,816
976
301
678
912
403
3,271
545
YoY (%)
7.7
-10.6
5.9
40.1
18.6
-5.5
10.2
-7
1QFY18
3,944
QoQ (%)
4.2
1,017
-14.2
259
23.0
840
13.1
937
15.6
364
4.6
3,417
5.5
527
-4
Source: MOSL, Company
Management commentary
n
n
n
Volumes:
North registered growth of 6% YoY, while east volumes grew 27% YoY.
East contributes to ~24% of the sales mix. Overall capacity utilization for the
company stands at 65%.
Realization:
Realizations in east were affected by a price cap in Chhattisgarh.
Profitability:
EBITDA/t differential between north and east operations is around
INR400/t (INR300/t due to cost differential and realization difference of
INR100/t).
13 November 2017
2

J K Lakshmi Cement
n
n
n
n
n
n
Cost-saving initiatives:
The company has started a trial run of 7MW Waste Heat
Recovery Plant at Durg, which will be operational in 3QFY18. The plant is likely
to fetch an improvement of INR 40-50/t in power & fuel cost for eastern units.
The 20MW thermal power plant will be completed by 3QFY19.
Debt:
Gross debt for standalone operations stood at INR22b, while net debt
stood at INR17b. The company plans to repay INR2b of debt in FY18.
Fuel mix:
North consume 85% petcoke, while east consumes 60% petcoke.
Cost:
Freight cost/t increased due to a change in commercial terms from Ex to
FOR.
Product mix:
Overall mix for the company is 41% OPC; 55% PPC and 5% slag.
Capex:
The company plans to incur INR 1.4b of capex for FY18, of which INR1b
has already been deployed in 1HFY18. Capex is expected to be the same in FY19.
Fundamental strength getting stained by rising concerns in east operations
n
n
n
n
n
JKLC has a strong market-mix, with 75% of its sales in north markets. It has also
diversified itself by adding capacity in east. Capacity addition in Surat and east
offers further growth potential for the company.
The company has a superior cost structure due to (a) consistently improving fuel
efficiency (in top quartile among industry players), (b) 100% self-sufficiency in
power in north and (c) competitive fuel mix with pet coke (85%).
However, eastern operations profitability is impacted by cost inefficiencies in
the form of higher power & fuel cost. Management is taking prudent measures
to improve profitability of the unit in the next 1-2 years.
Net debt likely to have peaked out with the conclusion of large part of ongoing
expansion; company expects to refinance loans, taking benefit of lower interest
rates.
Market mix favorable:
We remain positive on JKLC due to its higher exposure to
north/central markets, which we believe are likely to see highest realization
increase due to utilization improvement. However, a turnaround in east
operations would be a key monitorable. The stock trades at 9.5x/7.6x
FY19E/FY20E EV/EBITDA, and USD76/70 per ton on FY19/FY20 capacity. We
value JKLC at EV of 9x FY20 EV/EBITDA (implied EV of USD 80 on FY20 capacity),
translating to INR512/share. Maintain
Buy.
13 November 2017
3

J K Lakshmi Cement
Story in charts
Exhibit 6: Capacity expansion aids volume levers
Capacity (mt)
Effective Utilization (%)
Dispatch (mt)
Exhibit 7: Market mix (%)
North
East
78
88
91
100
105 103
92
83
79
76
78
84
80%
76%
20%
24%
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: EBITDA/ton (INR/tonne) trend
963
771
431
Exhibit 9: RoE to improve FY17 onwards (%)
30
RoE (%)
RoCE (%)
925
686
812
536
588
371
458
579
688
748
20
10
0
-10
Source: Company, MOSL
Source: Company, MOSL
13 November 2017
4

J K Lakshmi Cement
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
PAT Adj for EO items
Change (%)
Margin (%)
2013
20,550
19.6
16,262
79.1
4,287
20.9
1,489
2,798
835
555
2,517
163
2,354
696
-99
25.3
1,879
35.5
9.1
2014
20,566
0.1
17,546
85.3
3,020
14.7
1,352
1,668
772
443
1,339
185
1,154
132
92
19.4
1,079
-42.6
5.2
2015
23,071
12.2
19,576
84.9
3,495
15.1
1,119
2,376
907
282
1,750
633
1,118
87
75
14.5
1,497
38.7
6.5
2016
26,199
13.6
23,478
89.6
2,720
10.4
1,629
1,091
1,967
486
-390
107
-497
0
-431
86.8
-51
-103.4
-0.2
2017
29,104
11.1
25,450
87.4
3,654
12.6
1,724
1,930
1,887
698
742
0
742
0
-77
-10.4
819
-1,694.8
2.8
2018E
35,952
23.5
30,964
86.1
4,988
13.9
1,763
3,225
1,869
428
1,785
0
1,785
357
0
20.0
1,428
74.3
4.0
(INR Million)
2019E
40,455
12.5
34,057
84.2
6,398
15.8
1,848
4,550
1,744
400
3,206
0
3,206
962
0
30.0
2,244
57.2
5.5
2020E
45,775
13.1
38,332
83.7
7,442
16.3
1,897
5,545
1,704
400
4,241
0
4,241
1,272
0
30.0
2,969
32.3
6.5
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
2013
589
12,010
12,598
1,134
13,370
27,101
26,782
12,436
14,346
6,881
4,065
6,145
1,148
501
127
4,369
4,335
3,896
439
1,810
27,101
2014
589
12,444
13,032
1,226
16,042
30,300
29,305
13,590
15,715
9,080
4,477
6,392
1,024
555
356
4,457
5,364
4,950
415
1,028
30,300
2015
589
12,719
13,307
1,284
18,992
33,584
40,946
15,121
25,825
2,000
4,228
8,819
2,235
705
1,768
4,112
7,289
6,815
473
1,531
33,584
2016
589
12,452
13,041
163
19,147
32,350
28,905
1,617
27,288
2,831
4,376
6,589
2,406
965
118
3,101
8,734
8,556
178
-2,145
32,350
2017
589
13,228
13,817
0
21,706
35,523
31,588
3,331
28,257
2,051
8,099
7,428
2,776
895
90
3,667
10,312
10,129
182
-2,884
35,523
2018E
589
14,518
15,107
0
21,706
36,813
32,939
5,094
27,845
2,000
8,099
10,903
3,410
1,099
1,891
4,503
12,034
11,891
143
-1,131
36,813
(INR Million)
2019E
589
16,625
17,213
0
18,706
35,919
34,239
6,942
27,297
2,000
8,099
11,480
3,837
1,237
2,086
4,320
12,955
12,763
192
-1,476
35,919
2020E
589
19,456
20,045
0
16,706
36,750
35,739
8,839
26,899
1,500
8,099
14,173
4,341
1,399
3,964
4,469
13,921
13,743
178
252
36,750
13 November 2017
5

J K Lakshmi Cement
Financials and Valuations
Ratios
Y/E March
Basic (INR) *
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x) *
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV/Ton (USD)
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Debt/Equity
* Adjusted for treasury stocks
2013
16.0
28.6
107.0
2.5
19.5
27.7
15.5
4.1
2.7
12.8
153
0.6
15.4
10.3
10.6
0.8
20.4
8
69
1.4
3
1.1
2014
9.2
20.7
110.7
2.0
29.6
48.3
21.4
4.0
2.7
18.3
137
0.5
8.4
6.2
5.7
0.7
18.2
9
88
1.2
2
1.2
2015
12.7
22.2
113.1
2.0
28.8
34.8
19.9
3.9
2.8
18.5
115
0.5
11.4
7.4
7.6
0.7
35.4
10
108
1.2
3
1.4
2016
-0.4
13.4
110.8
2.0
-420.5
-1,015.1
33.0
4.0
2.4
23.6
102
0.5
-0.4
0.6
0.5
0.8
33.5
12
119
0.8
1
1.5
2017
7.0
21.6
117.4
0.8
12.6
63.6
20.5
3.8
2.3
18.2
90
0.2
6.1
8.6
6.8
0.8
34.8
10
127
0.7
1
1.6
2018E
12.1
27.1
128.4
1.0
9.6
36.5
16.3
3.5
1.8
13.2
81
0.2
9.9
8.1
8.0
1.0
34.6
10
121
0.9
2
1.4
2019E
19.1
34.8
146.2
1.0
6.1
23.2
12.7
3.0
1.5
9.5
76
0.2
13.9
9.5
10.2
1.1
34.6
10
115
0.9
3
1.1
2020E
25.2
41.3
170.3
1.0
4.6
17.6
10.7
2.6
1.2
7.6
70
0.2
15.9
11.5
12.8
1.2
34.6
10
110
1.0
3
0.8
Cash Flow Statement
Y/E March
Oper. Profit/(Loss) before Tax
Interest/Dividends Recd.
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO expense
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2013
4,287
555
0
-696
644
4,790
-163
4,627
-6,236
-1,610
473
-5,763
-569
2,366
-835
-342
619
-518
890
372
2014
3,020
443
0
-132
1,012
4,342
-185
4,157
-4,723
-565
-413
-5,135
-220
2,673
-772
-275
1,405
427
127
554
2015
3,495
282
0
-103
909
4,582
-633
3,950
-4,560
-610
249
-4,311
-406
2,950
-907
-275
1,361
1,000
356
1,356
2016
2,720
486
0
-691
2,026
4,541
-107
4,434
11,210
15,644
-148
11,062
75
154
-1,967
-275
-2,013
13,483
1,768
15,250
2017
3,654
698
0
-86
711
4,977
0
4,977
-1,903
3,075
-3,722
-5,625
60
2,559
-1,887
-103
630
-18
118
99
2018E
4,988
428
0
-357
49
5,108
0
5,108
-1,300
3,808
0
-1,300
0
0
-1,869
-138
-2,006
1,801
90
1,891
2019E
6,398
400
0
-962
540
6,377
0
6,377
-1,300
5,077
0
-1,300
0
-3,000
-1,744
-138
-4,882
195
1,891
2,086
(INR Million)
2020E
7,442
400
0
-1,272
150
6,720
0
6,720
-1,000
5,720
0
-1,000
0
-2,000
-1,704
-138
-3,842
1,878
2,086
3,964
13 November 2017
6

J K Lakshmi Cement
Corporate profile
Company description
JK Lakshmi Cement (JKLC), promoted by the HS
Singhania group, is a North India-based cement
company. It has a cement capacity of 10.9 mtpa and
a CPP capacity of 87MW, which makes it self-
sufficient in energy. While the North and the West
account for 80% of its current dispatch mix, it is
likely to reach total capacity to 11.9 mtpa by FY20.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
45.9
19.0
9.8
25.3
Jun-17
45.9
18.8
10.3
24.9
Sep-16
45.9
21.0
12.2
20.9
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Hdfc Standard Life Insurance Company
Limited
Sachin Bansal
Franklin Templeton Mutual Fund A/C
Franklin India High Growth Companies Fund
And Franklin India Smal
Government Pension Fund Global
Life Insurance Corporation Of India
% Holding
3.5
3.4
2.8
2.6
2.5
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Bharat Hari Singhania
Vinita Singhania
Brijesh K Daga
Designation
Chairman & Managing Director
Vice Chairman & M.D.
Company Secretary
Exhibit 5: Directors
Name
B V Bhargava
N G Khaitan
Raghupati Singhania
S K Wali
Name
K N Memani
Pradeep Dinodia
Ravi Jhunjhunwala
Shailendra Chouksey
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Lodha & Co
Namo Narain Agarwal
R J Goel & Co
Type
Statutory
Secretarial Audit
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
12.1
19.1
25.2
Consensus
forecast
13.0
25.7
39.0
Variation (%)
-6.9
-25.7
-35.3
Source: Bloomberg
Source: Capitaline
13 November 2017
7

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a)
from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and
earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other
potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s),
as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with
companies covered in its research reports. As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered
true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not
been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.
The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though
disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
J K Lakshmi Cement
Disclosure of Interest Statement
Analyst ownership of the stock
J K Lakshmi Cement
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary
trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to
subject company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC)
pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with
Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any
investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research
Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is
not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States.
Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S.
persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional
investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S.
registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and
therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following
representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person
or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or
appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations
as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time
without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities
mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities
functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is
being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not
directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to
certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or
representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The
person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
employees responsible for any such misuse and further agrees to hold MOSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this
information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
13 November 2017
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