Reco: Buy Expected Value Rs.404 Nifty Level 5888
- JK Cement - Multi product and multi region play
- One of the largest cement manufacturers in North India & second largest producer of white cement in India.
- Known for brands like – JK Cement, Sarvashaktiman, JK Super.
- Expansion plans to be the trigger going forward
 |
| Mr. A K Prabhakar |
- Grey cement – The company plans to augment its grinding capacity by 3 mn tons at Haryana& Rajasthan.
- White cement – Plans to set up 0.6 mn tons plant in UAE for Middle East markets.
- Volume and Price increase are the important parameters for the performance
- The company has been enjoying good volume growth compared to its peers and price increase is also helping on the realizations front.
- Consistent dividend payer 20 per cent payout ratio.
Valuations.!
At target price of Rs.
404 the stock would trade at 5.8x FY 14 E EV / EBITDA and at a PE of 9x in the
same period. With expansion plans on
track and added advantage of white cement growth will be beneficial for the
company’s growth potential going forward
By Mr. A K Prabhakar
Senior Vice President
- Equity Research
Anand Rathi
4 th Floor , Silver
Metropolis, Jaicoach Compound Opposite Bimbisar Nagar,
Goregaon(East),
Mumbai - 400 063. India
Tel No: +91 22 4001
3700, Direct: +91 22 4001 3999, Fax No:
+91 22 4001 3770.
Website: www.rathi.com
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