JK Lakshmi Cement - Target upgrade - Angel Broking

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

JK Lakshmi is a predominantly north India cement company. North India is a favorable location for the cement industry as it is consolidated to a large extent as well as demand and supply outlook is better compared to other locations. JK Lakshmi has reported strong numbers in Q2FY21 as well as announced a new capacity addition plan through his subsidiary Udaipur Cement. It is also trading at a significant discount compared to north based cement company such as JK Cement as well as historical valuation. We have a buy rating on the company at an upgraded revised target price of Rs.391 by valuing standalone business at 6x FY22E EV/EBITDA.

Shares of JK LAKSHMI CEMENT LTD. was last trading in BSE at Rs.357.5 as compared to the previous close of Rs. 355.2. The total number of shares traded during the day was 28301 in over 1407 trades.

The stock hit an intraday high of Rs. 358.45 and intraday low of 348. The net turnover during the day was Rs. 9969456.

Source : Equity Bulls

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