JK Lakshmi Cement Q3 Results Review - Strong Profitability; Announced Capacity Expansion Plan: Motilal Oswal

"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.JK Lakshmi Cement Ltd.'s Q3 FY24 operating performance was above our estimates, with consolidated Ebitda at Rs 3 billion (up 63% YoY; 18% above our estimate). Ebitda/t increased 52% YoY to Rs 1,021 (estimate Rs 909). OPM was up 6pp YoY to ~18%. Adjusted profit after tax grew 82% YoY to Rs 1.4 billion (estimate Rs 1.2 billion). Management indicated that cement volume growth (consolidated) should be at ~10% YoY in FY24 (versus earlier estimated ~12-15%). The Eastern region continues to see higher growth, driven by the IHB segment. Cement prices were soft in both January-February- 24. Management believes that the company’s volume growth would surpass that of the industry’s in FY25, aided by expansion in Udaipur Cement Works Ltd., a subsidiary of the company. Further, it announced the next phase of expansion in the east (including north-east) and aims to reach 30 million tonnes per annum by FY30..We raised Ebitda estimates by 6% for FY24 (given the outperformance) and 2-3% for FY25-26. JK Lakshmi Cement is trading at 8 times/6.5 times FY25E/FY26E enterprise value/Ebitda. JK Lakshmi Cement is a cost-efficient player with presence in favorable regions (Gujarat and North). We value JK Lakshmi Cement at 9 times FY26E EV/Ebitda and arrive at a target price of Rs 1,030..Click on the attachment to read the full report:.PI Industries Q3 - New Product And CSM Drive Export Growth, Margins; Positive Outlook: Axis Securities.DISCLAIMERThis 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."

JK Lakshmi Cement Q3 Results Review - Strong Profitability; Announced Capacity Expansion Plan: Motilal Oswal

Targets to increase grinding capacity to 30 million tonnes per annum by FY30.

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JK Lakshmi Cement Q3 Results Review - Strong Profitability; Announced Capacity Expansion Plan: Motilal Oswal

Targets to increase grinding capacity to 30 million tonnes per annum by FY30.

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