Buy JK Lakshmi Cement; target of Rs 915: Sharekhan

In Q4FY25, standalone revenue stood at Rs. 1,738.8 crore, up 5.5% y-o-y. Operating profit declined 12% y-o-y due to higher operating expenses. Volume remained flat at 25.7 lakh tonnes, with blended realization per tonne at Rs. 6,766 (up 4.7% y-o-y). The company is adding a 1.3 y-o-y grinding unit capacity in Surat, with half expected to be commissioned by June and the remainder by September. Additionally, a 2.3 million tonnes clinker unit and a 4.6 million tonnes grinding units capacity in Durg are expected to be commissioned in phases over FY26 to FY28. On a consolidated basis, the company expects volume growth of 10%, compared to the industry growth forecast of 6-7% in FY26.

Outlook

We retain a Buy rating on JK Lakshmi Ltd with a revised PT of Rs. 915, factoring better profitability lead by expected cost efficiencies.