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Check Before You Invest : JK Cement Ltd

BSE: 532644 NSE: JKCEMENT ISIN: INE823G01014
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

Snapshot

Q.1 Which industry/sub-sector does JK Cement Ltd belong to?
JK Cement Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.
Q.2 Is JK Cement Ltd a good quality company?
JK Cement Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is JK Cement Ltd undervalued or overvalued?
JK Cement Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is JK Cement Ltd a good buy now?
JK Cement Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of JK Cement Ltd?
JK Cement Ltd revenue growth is 1.6% for FY-2025 , which is below its 5 year CAGR of 15.2% , indicating slower growth.
Q.2 Gross Profit margin of JK Cement Ltd?
JK Cement Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025 , which is below its 5 year median of 13.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of JK Cement Ltd?
JK Cement Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.88% for FY-2025 , which is below its 5 year median of 18.46% indicating decreasing margins.
Q.4 Net Profit Margin of JK Cement Ltd?
JK Cement Ltd Net Profit Margin is 7.84% for FY-2025 , is in line with with its 5 year median of 7.84%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 13 13.5
Operating Profit Margin 17.88 18.46
Net Profit Margin 7.84 7.84
Q.5 Return on Asset of JK Cement Ltd?
JK Cement Ltd Return on Asset is 5.68%, which is below its 5 year historical median of 6.13%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of JK Cement Ltd?
JK Cement Ltd Return on equity is 15.24% for FY-2025 , which is below its historical median of 15.8%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of JK Cement Ltd?
JK Cement Ltd Return on capital employed is 15.08% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of JK Cement Ltd?
JK Cement Ltd Cash conversion cycle is 10 days, below its historical median of 15 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.85 0.89
ROE 15.24 15.8
ROCE 15.08 16.42
Cash Conversion Cycle 10 days 15 days
Q.9 Debt to Equity ratio of JK Cement Ltd?
JK Cement Ltd Debt-to-Equity ratio is 0.97 , which is above with the industry average of 0.28 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of JK Cement Ltd?
JK Cement Ltd Debt to cash flow from operations is 2.86 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JK Cement Ltd?
Promoters hold 45.66% of the JK Cement Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JK Cement Ltd vs industry peers?
JK Cement Ltd revenue CAGR is 15.22% , compared to the industry median CAGR of 8.67% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 11,093.2 13,552
Gross Profit 1,442.1 2,065.3
Operating Profit 1,978 2,407
Net Profit 870 854
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.85 0.67
ROE 15.24 12.77
ROCE 15.08 15.51
Cash Conversion Cycle (days) 10.3 15

Valuation & price assessment

Q.1 Stock return of JK Cement Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23.5% 13.9% 22.9% 8.8%
Q.3 Valuation ratios of JK Cement Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.83 35.66 34.86
Price to Book 6.34 3.61 1.92
Price to Sales 3.34 2.27 1.25
EV to EBITDA 18.3 11.58 11.55

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