JK Lakshmi says initial loss estimates loss for Chattisgarh plant at Rs. 120cr - Angel Broking

JK Lakshmi Cement held an investor conference call on April 12th 2013 (Friday) to brief about the fire incident which took place in the company's green-field Chattisgarh plant on April 4, 2013. The fire incident occurred due to the ruckus created by some agitated villagers from one of the nearby villages, as the company didn't accede to their demand for permanent employment.

The management contended that agitated villagers belonged to one particular village and had sought employment for all the inhabitants of the village irrespective of age and expertise which was infeasible considering there was no requirement for employing so many of them. The management said that certain administration building and equipments got damaged due to the fire and has put the initial loss estimate at Rs. 120cr. It further said that the plant has insurance cover and the insurers are currently in the process of evaluating the loss.

The management is confident that the actual loss would be lower than the initial estimates. The commissioning of the plant is expected to be delayed by 2-3 months. We maintain a Buy on the stock with a Target Price of Rs. 143.

Source : Equity Bulls

Keywords