JK Lakshmi Cement shares rally 7% on healthy Q4; up 15% in last one year

JK Lakshmi Cement shares rose as much as 7.16 per cent to hit an intraday high of Rs 851.50 per share.

The surge in JK Lakshmi Cement share was fuelled by robust Q4FY24 results, which came in line with street estimates. JK Lakshmi Cement’s profit rose over 41 per cent to Rs 162.1 crore in the March quarter of financial year 2024, as opposed to Rs 114.8 crore in the same quarter a year ago.

However, the cement manufacturer’s revenue dropped 4.4 per cent to Rs 1,780.9 crore in Q4FY24, from Rs 1,862.1 crore in Q4FY23.

At the operating front, JK Lakshmi Cement’s earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped nearly 45 per cent to Rs 336.6 crore in the March quarter of FY24, from Rs 232.6 crore in the March quarter of FY23.

Consequently, Ebitda margin expanded 640 basis points to 18.9 per cent in Q4FY24, from 12.5 per cent a year ago.

Vinita Singhania, chairperson & managing director (CMD) of JK Lakshmi Cement said, "The profitability of the company improved on account of higher volume, better product & sales mix and reduction in fuel cost."

Outlook

"Considering the government's focus on & infrastructure development & higher budgetary allocation towards Infrastructure development and various other initiatives for housing & road development, the outlook for cement sector is quite positive in the coming year,” JK Lakshmi Cement said in a statement.

Motilal Oswal analysts said, “JK Lakshmi Cement is expanding clinker/cement capacity by 2.3mtpa/6.0mtpa in the next two to three years. The company targets to increase grinding capacity to 30mtpa by FY30 from 16.5mtpa currently. We have a ‘Buy’ rating on the stock.”

The market capitalisation of JK Lakshmi Cement is Rs 9,608.35 crore. The 52-week high of the JK Lakshmi Cement share is Rs 998.40 per share while its 52-week low is Rs 608.10 per share.

At 10:45 AM, shares of JK Lakshmi Cement were trading 2.68 per cent higher at 815.85 apiece. In comparison, S&P BSE Sensex was trading 0.07 per cent lower at Rs 75,368.91 levels.