JK Lakshmi Cement - 1QFY2014 Result Review - Angel Broking

For 1QFY2014 JK Lakshmi Cement posted a 14.4% yoy decline in top-line to Rs. 457cr, which was below estimates. Volumes fell by a steep 12.2% yoy, while realization too was down by ~5% yoy. The steeply fall in company's sale volumes was on account of poor cement demand scenario in the company's key markets in northern and western India. OPM for the quarter fell steeply by 754bp yoy on account of lower realization and increase in costs. Bottom-line fell by 69% yoy on account of poor operational performance.

We maintain a Buy on the stock with a revised target price of Rs. 100.

Source : Equity Bulls

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