Strong price movement in the cement stocks led to a 12% increase in this company

Strong price movement in the cement stocks led to a 12% increase in this company

Indian Market
by 5paisa Research Team Last Updated: 2022-09-08T18:14:07+05:30

JK Lakshmi Cement today began trading at Rs 502 and reached a high of Rs 580. On the BSE, the volume of the stock increased by 3.89 times. 

JK Lakshmi Cement today began trading at Rs 502 and reached a high of Rs 580. On the BSE, the volume of the stock increased by 3.89 times. The company has a market value of Rs 6570 crore. 

Cement stock has seen strong price and volume momentum over the last two days. The prices of Ultratech cement, Ambuja Cement, ACC, and Shree cement all have substantially increased. One of the factors driving such price volume action is the anticipated decline in coal prices.  

Today, JK Cement traded almost 12% higher than yesterday's closing price. It has one of the lowest PEs in its peer group at 14.18x, compared to others. After ACC and Ambuja, which have ROCEs of 19.20% and 22.14%, respectively, it also offers the third-highest ROCE of 18.74%.  

A subsidiary of the JK group, JK Lakshmi Cement Ltd produces and distributes cement in various Indian states as well as associated goods including RMC and AAC blocks. Under a number of brands, including JK Lakshmi Cement, JK Lakshmi PRO, Heavy Duty, JK Sixer, Super Sixer, Gypsum Plaster, Wall Putty, JKL Power Mix RMC, JK Smartblox, Smartserve, and others, the company offers consumers numerous types of cement and other products. 

The sales for the first quarter of FY23 increased by 25% year over year to Rs 1654 crore. Over the last five years, the company has produced a good CAGR of 64.4% in profit growth. The main expense for cement firms is their fuel and power costs. In JK Lakshmi Cement accounts for about 24% of sales. Raw material expense is about 20 per cent of sales. The company is reducing its debts for the past 5 years.  

For FY22, the debt-to-equity ratio dropped from 1.2x to 0.8x. In FY22, there were Rs 243 crore in unfinished capital projects that could boost business capacity in the future. 


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