HDFC Securities has given Buy recommendation for JK Lakshmi Cement with a target price of Rs. 460 in its research report issued on Feb 03, 2021
HDFC Securities’ research report on JK Lakshmi Cement
In 3QFY21, JKLC’s standalone revenue/EBITDA/APAT firmed up 19/26/108% YoY to INR 11.93/1.92/1.02bn respectively, buoyed by strong volume growth, stable realisation, and lower interest and tax outgo. Both standalone and consolidated unitary EBITDA rose ~10% each to INR 712/MT and INR 815/MT respectively.
We continue to like JKLC for its continued deleveraging and asset sweating. We maintain our earnings estimates and BUY rating, with revised SOTP-based target price of INR 460/sh.