Comments
Reliance Securities
JK Cement (Buy)
CMP: ₹957.95
Target: ₹1,180
JK Cement (JKC) is one of our top picks in our active coverage universe as we believe JKC to witness healthy traction ahead on the back of sustained growth from its value added products and likely realisation recovery for grey cement operation.
Further, a well-planned expansion of 4.2 million tonne will further aid JKC to consolidate its presence in various markets. With healthy cash generation at operating level, we expect JKC to fund the expansion plan comfortably. Notably, value added products (Wall Putty and White Cement) are likely to remain cash cow for JKC and continue to offer an edge over others. Current valuations at 9.8x and 8.7x EBITDA of FY19E and FY20E, respectively look attractive, which along with strong return ratios make JKC a strong case of value investment. We maintain our fundamental ‘buy’ rating on the stock with a target price of ₹1,180.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.