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Hold JK Cement, target price Rs 2700: Emkay Global

Emkay Global has hold call on JK Cement with a target price of Rs 2700. The current market price of . is Rs 2386.2. Time period given by analyst is one year when Ltd. price can reach defined target.

JK Cement Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 18563.70 Crore) operating in Cement sector.

JK Cement Ltd. key Products/Revenue Segments include Cement and Other Operating Revenue for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2392.98 Crore, up 16.37 % from last quarter Total Income of Rs 2056.28 Crore and up 10.37 % from last year same quarter Total Income of Rs 2168.19 Crore. Company reported net profit after tax of Rs 199.65 Crore in latest quarter.

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Investment Rationale
The brokerage broadly maintains FY23-24 EBITDA estimates, with an unchanged TP of Rs2,700 (Mar’23). Its DCF-based TP implies 1-year forward EV/EBITDA of 12x. Maintain Hold as risk-reward appears to be balanced.



Promoter/FII Holdings
Promoters held 45.82 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.5 per cent, DIIs 20.63 per cent.

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