ICICI Direct has given Buy recommendation for JK Lakshmi Cement with a target price of Rs. 785 in its research report issued on Nov 02, 2021

ICICI Direct’s research report on JK Lakshmi Cement

JK Lakshmi mainly caters to north, west & eastern markets with total capacity of 13.3 MT (including subsidiary). It has integrated units at Sirohi, Udaipur (Rajasthan), and Durg (Chhattisgarh) while 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 requirements The company is now adding 2.5 MT cement capacity (1.5 MT clinker) through its subsidiary unit UCWL at cost of Rs 1400 crore

Outlook

We remain positive on the company and maintain BUY rating We value company at Rs 785 i.e.10x FY23E EV/EBITDA

 

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