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SMR
06-02-2015, 10:46 PM
J.K. Cement Limited is engaged in cement business. The Company produces Ordinary Portland Cement (OPC). OPC is for all kinds of construction jobs and concrete components production. Its J.K. Super Cement is a grey cement brands. Its Portland Slag Cement (PSC) is an intimately interground mixture of Portland Cement Clinker and granulated slag (Non-metallic) which is a by product of Iron Blast furnace from steel plant. It is mainly used in special structure like pre-stressed concrete. The Company’s J.K. Wall Putty is white cement based fine powder, which provides a base for concrete / cement plastered walls and ceilings. The Company’s subsidiaries include J.K. Cement (Fujairah) FZC and J.K. Cement Works (Fujairah) FZC.

Official website: www.jkcement.com

SMR
06-02-2015, 10:47 PM
JK Cement (JKCem) posted a strong quarterly performance for 4QFY2015 on better than expected realization. The company’s net sales jumped by 10.1% yoy to Rs911.4cr led by strong volume growth and better than expected realization. The company posted a strong 10.4% yoy growth in its sales volume despite a challenging demand environment in the industry. While blended realization/tonne at Rs4,772 was flat, it was above our estimate of Rs4,704. EBITDA at Rs159.1cr was flat on a yoy basis, as increase in operating cost negated the better than expected realization numbers. However EBITDA/tonne decline by 8.8% yoy to Rs833 but was above our estimate of Rs806. EBITDA margin at 17.5%, down 160bp yoy: For 4QFY2015, JKCem posted a 10.1% yoy increase in its top-line to Rs911.4cr, led by volume growth of 10.4% yoy to 1.91mt. However realization/tonne slipped marginally by 0.2% yoy to Rs4,772 but was above our estimate of Rs4,706. EBITDA at Rs159.1cr was flat on a yoy basis but was in line with our estimate of Rs163cr. However, the EBITDA margin at 17.5% was above our estimate, led by better realization. The operating cost/tonne increased by 1.8% yoy to Rs3,939. EBITDA/tonne came in at Rs833, down by 8.8% yoy, due to flat realization and increase in operating cost. Outlook and valuation: Going ahead, as the new capacity gets commissioned and with demand environment expected to improve during 2HFY2016, we forecast the top-line to grow at a CAGR of 19.5% and EBIDTA to grow at CAGR of 37.4% over FY2015-17. At CMP, the stock trades at 7.2x FY2017 EV/EBIDTA and EV/tonne of $85 on FY2017 blended capacity. However, we maintain our Buy rating on the stock with a target price of Rs778 based on 8.0x grey cement and 9.0x white cement FY2017 EV/EBIDTA. The target price implies EV/tonne of US$100 (on blended capacity of 11.6mtpa).

Source: http://www.angelbroking.com

SMR
08-05-2015, 11:41 AM
JK Cement (JKCem)’s 1QFY2016 numbers have come in below our estimates, mainly due to sharp fall in realization and weak cement demand. The company’s net sales grew by just 1.2% yoy to Rs811cr and was below our estimate of Rs850cr (by 4.6%). The company’s blended sales volume increased by 4.4% yoy, mainly led by 11% cement volume growth in the north region. The blended realization/tonne, at Rs4,462, declined by 3.1% yoy and by 6.5% qoq; ie below our estimate of Rs4,581. The EBITDA at Rs84.4cr fell by 14.3% on a yoy basis, due to sharp decline in realization. The EBITDA/tonne declined by 17.9% yoy to Rs465 and is below our estimate of Rs610. EBITDA margin at 10.4%, down by 188bp yoy: For 1QFY2016 JKCem posted a marginal 1.2% yoy increase in its top-line to Rs810.7cr, led by volume growth of 4.4% yoy to 1.8mt. However, realization/tonne slipped sharply by 3.1%/6.5% yoy/qoq to Rs4,462 and is below our estimate of Rs4,581. The EBITDA came in at Rs84.4cr, a decline of 14.3% on a yoy basis and is below our estimate of Rs113.2cr. Hence, the EBITDA margin, at 10.4%, is below our estimate of 14.9%, led by weak realization. The operating cost/tonne declined by 1.0% yoy to Rs3,997 on account of lower power & fuel and freight cost. The EBITDA/tonne came in at Rs465, down by 17.9% yoy, due to fall in realization. Outlook and valuation: Going ahead, as new capacity get commissioned and with the demand environment expected to improve during 2HFY2016, we forecast the top-line to grow at a CAGR of 19.5% and EBIDTA to grow at CAGR of 34.7% over FY2015-17E. At the current market price, the stock trades at 7.8x FY2017 EV/EBIDTA and at an EV/tonne of $89 on FY2017 blended capacity. However, we maintain our Buy rating on the stock with a target price of Rs767 based on 8.0x grey cement and 9.5x white cement FY2017 EV/EBIDTA.

Source: http://www.angelbroking.com/