ICICI Direct has given Buy recommendation for JK Lakshmi Cement with a target price of Rs. 800 in its research report issued on Aug 03, 2021

ICICI Direct’s research report on JK Lakshmi Cement

JK Lakshmi mainly caters to the north, west & eastern markets with total capacity of 13.3 MT (including subsidiary). It has integrated units at Sirohi, Udaipur (Rajasthan) and Durg (Chhattisgarh) with grinding units at Jhajjar (Haryana), Cuttack (Odisha), Kalol and Surat (Gujarat). It also has 105 MW power plant (74 MW CPP, 21 MW WHRS and 10 MW solar) that fulfils 75% of its total power requirement The company is now adding 2.5 MT cement capacity (1.5 MT clinker) through its subsidiary unit UCWL at a cost of Rs 1400 crore

Outlook

We remain positive on the company and maintain our BUY rating We value the stock at Rs 800 i.e. 9.5x FY23E EV/EBITDA

 

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