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View Full Version : JK Lakshmi Cement Limited (NSE:JKLAKSHMI) (BSE:500380)



SMR
08-17-2015, 03:07 PM
JK Lakshmi Cement Limited is engaged in the cement business. The Company operates through one: Cementitious Materials. JK Lakshmi Cement comes in three variants: Blended Cement PPC, 53 Grade and 43 Grade. Its JK Lakshmi Cement (blended) are used in all types of RCC work, underground structures, bridges, general building work and hydro power station. Its JK Lakshmi Cement (53 Grade) is used in pre-stress work, precast element, bridges and atomic power station. It’s JK Lakshmi Cement (43 Grade) is used in commercial building industrial constructions, multi-storied complexes, and heavy duty floors. The Company’s new range of products is: JK LaxmiPlast-a Plaster of Paris (POP) solution, JK GypGold-light-weight gypsum based plaster and JK Smart Blox-an energy saving product. The Company’s manufacturing units are at Sirohi-Rajasthan, Kalol-Gujarat, Jhajjar-Haryana and Durg-Chhattisgarh. The Company has 2 subsidaries: Udaipur Cement Works Ltd and Hansdeep Industries & Trading Co Ltd.

Official Website: www.jklakshmi.com

SMR
08-17-2015, 03:09 PM
For 1QFY2016, JK Lakshmi Cement (JKLC)’s reported numbers have come in line with our estimates on the profitability front. The company’s net sales declined by 1.6% yoy to Rs590.8cr, although the same are above our estimate of Rs553.9cr. Net Sales came in above our estimate mainly due to a higher than expected 14.6% yoy increase in volume numbers. The EBITDA declined by 55.3% yoy to Rs50.7cr, in line with our estimate of Rs52.6cr. However, the EBITDA margin, at 8.6%, was below our estimate of 9.5%, mainly due to a higher than expected fall in realization. The EBITDA/tonne during the quarter fell sharply by 61% yoy to Rs307. JLKC reported a net loss of Rs23.4cr (our estimate was of a loss of Rs23.9cr), mainly due to increase in depreciation and interest cost on account of commissioning of its new Durg plant in March 2015. EBITDA at 8.6%, declined by 1032bp yoy: For 1QFY2016, JKLC posted a 1.6% yoy fall in its top-line to Rs590.8cr. The top-line however has come in better than our estimate of Rs553.9cr. The beat in top-line is due to better than expected growth in cement sales, as volume increased by 14.6% yoy to 1.65mt as against our estimate of 1.53mt. However due to subdued market conditions the realization was weak; it declined by 14.1% yoy to Rs3,580/tonne and is below our estimate of Rs3,628/tonne. The EBITDA margin for the quarter fell steeply by 1,032bp yoy on account of sharp fell in realization. The company’s operating cost/tonne declined by 3.2% yoy to Rs3,273, in line with our estimate of Rs3,283. Outlook and valuation: Going ahead, JKLC’s new capacity addition and improvement in demand situation would lead its top-line to grow at a CAGR of 25.3% during FY2015-17. The bottom-line is also expected to grow at a CAGR of 81.5% over FY2015-17E, driven by improvement in cement demand and healthy pricing scenario. We maintain our Buy rating on the stock with a target price of Rs430 on 8.5x EV/EBITDA and EV/tonne of US$90 (on FY2017E capacity) basis.

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