JK lakshmi Cement - Q2FY21 Results - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

JK Lakshmi Cement posted a 75% jump in profit to Rs. 80.8 crore in Q2FY21 beating street expectation of Rs. 48 crore. Company achieved 12% higher turnover of Rs. 1044. 8 crore in Q2FY21 as against Rs. 935.5 crore in Q2FY20 also beats street expectation. The company's concerted efforts to improve efficiencies, better product mix and reduction in logistic costs enabled the Company to push its profitability up. Softening in Pet-Coke prices helped the Company to improve the margins. Company's EBIDTA rose by 32% to Rs. 205.1 crore in Q2FY21 from Rs. 155.5 crore in Q2FY20. Overall, numbers were above our expectation in all the key parameters. We are bullish on JK Lakshmi Cement as it is witnessing strong demand in its operating regions and it is trading at a discount compared to its historical valuation as well as peers. JK Lakshmi Cement is our top pick in midcap cement Space.

Company's subsidiary Udaipur Cement Works Limited is expanding its cement capacity by 2.5 million tonnes which is likely to be commissioned in Oct-Dec. 23. On completion of this expansion, consolidated capacity will be enhanced to 16.4 million tonnes.

Shares of JK LAKSHMI CEMENT LTD. was last trading in BSE at Rs.290.2 as compared to the previous close of Rs. 281.7. The total number of shares traded during the day was 33984 in over 1408 trades.

The stock hit an intraday high of Rs. 293 and intraday low of 276.5. The net turnover during the day was Rs. 9755723.

Source : Equity Bulls

Keywords