Broker’s call: JK Lakshmi Cement (Buy)

BUSINESS

Broker’s call: JK Lakshmi Cement (Buy)

AIMPWA

March 14, 2025

Table of Content

Target: ₹872

CMP: ₹719.10

We maintain our Buy rating on JK Lakshmi (JKLC) with an unchanged target price of ₹872/share (9x FY27E consolidated EBITDA), post our interaction with the management.

After a flattish FY25, we estimate JKLC’s volume growth to accelerate to 9 per cent CAGR during FY25-27E on the ramp-up of its north expansion. The company has launched a brand enhancement exercise and is also beefing up its green energy infrastructure along with a further reduction in lead distance. Falling fuel prices are also expected to further cushion the margin compression (from poor pricing) in FY25 and add to margin recovery from FY26 onwards.

Subsequently, we estimate unit EBITDA to rebound from a six-year low of ₹648 per MT in FY25E to ₹863/968 per MT in FY26/27E. Ongoing expansions should lead to consolidated capacity increasing to 22.5 mn MT by FY28 (from 16.5 mn MT in FY24). JKLC maintained its capex outgo guidance of ₹800/1,000/1,500 crore in FY25/26/27E towards these expansions.

Furthermore, we estimate its consolidated net debt to EBITDA to cool off to remain under 2x during FY26/27E. We currently value the company at 9x its FY27E consolidated EBITDA.

Source link

AIMPWA

mmkrishnandasu@gmail.com http://msmenews.sbs

Budget winds fill the sails of retail investors. Will it last?

AIMPWAMarch 14, 2025

A Mint analysis of 1,957 companies shows that individual investors (holding nominal share capital up to ₹ 2 lakhs) increased their ownership in approximately 51% of these companies between the September and December quarters. This compares with nearly 49% of stocks that saw a sequential rise in stakes in the previous two quarters. These 51%...

Wall Street Today: US stocks climb after S&P 500 enters correction, Nasdaq up 2%; Tesla edges higher

AIMPWAMarch 14, 2025

U.S. stocks rose on Friday after a broad selloff on Wall Street during the week as investors assessed the fallout of tariff policies on economic growth, while new data signaled deteriorating consumer sentiment and a surge in inflation expectations. All three indexes are headed for weekly declines, with the benchmark S&P 500 on track for...

Budget 2025 Key Announcements: New tax bill, income tax slab, ITR extension, more from FM Nirmala Sitharaman. Full list

AIMPWAMarch 14, 2025

Budget 2025 Key Announcements: Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in the Parliament on February 1. This was her record eighth budget presented under Prime Minister Narendra Modi-led government’s third term i.e. Modi 3.0. In her speech, Sitharaman said the Budget aims at “transformative reforms” in six key areas — financial sector,...

From Southwest to BP, Elliott and other activists are shaking up companies again

AIMPWAMarch 14, 2025

Investors like billionaire Paul Singer have more money than ever to throw around, and they are making their presence felt on Wall Street and Main Street. Source link

Mint Primer | Finance minister Nirmala Sitharaman’s eighth budget in eight points

AIMPWAMarch 14, 2025

1. A mini bazooka Faced with a sharp fall in urban consumption which dragged economic growth down in the second quarter of this fiscal to just 5.4% of the gross domestic product (GDP) compared to 8.2% in the same period last year, the finance minister had to act, and she decided to take the bull...

ALL INDIA MSMES PROMOTION AND WELFARE ASSOCIATION