NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We estimate a cumulative operating cash flow (consolidated) of Rs 32 billion and capex (consolidated) of Rs 35 billion over FY24-26. Its consolidated net debt is estimated to increase to Rs 20b by FY26 from Rs 10 billion in FY23 and net debt-to-Ebitda is expected at 1.4 times in FY26 versus 1.2 times in FY23.
We believe timely capacity addition by JK Lakshmi Cement will help it to maintain its capacity/ market share. The stock is currently trading at 8.2 times/6.7 times FY25/FY26E enterprise value/Ebitda and $67/$57/tonne (at a significant discount to the replacement cost).
JK Lakshmi Cement's robust expansion plans, improvement in profitability, and higher return ratios (return on equity/return on capital employed of 16%/13% in FY26E) warrant a re-rating of the stock.
We value JK Lakshmi Cement at nine times FY26E EV/Ebitda and arrive at a target price of Rs 1,030 and reiterate our Buy rating on the stock.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
