Check Before You Invest : JK Lakshmi Cement Ltd

Snapshot

Q.1 Which industry/sub-sector does JK Lakshmi Cement Ltd belong to?

JK Lakshmi Cement Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is JK Lakshmi Cement Ltd a good quality company?

JK Lakshmi Cement Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is JK Lakshmi Cement Ltd undervalued or overvalued?

JK Lakshmi Cement Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is JK Lakshmi Cement Ltd a good buy now?

JK Lakshmi 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 Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd revenue growth is -2% for FY-2025, which is below its 5-year CAGR of 8.9%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Return on capital employed is 10.23% for FY-2025, which is below its 5-year historical median of 19.79%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Return on Asset is 3.53%, which is below its 5-year historical median of 7.64%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Return on equity is 8.24% for FY-2025, which is below its 5-year historical median of 16.26%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Cash conversion cycle is 21 days, above its 5-year historical median of 9 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.84	1.13
ROE	8.24	16.26
ROCE	10.23	19.79
Cash Conversion Cycle	21 days	9 days

Q.6 Gross Profit margin of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Gross profit margin which is the profit after deduction of direct costs, is 11% for FY-2025, which is below its 5-year median of 13.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.97% for FY-2025, which is in line with its 5-year median of 13.97% indicating stable margins.

Q.8 Net Profit Margin of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Net Profit Margin is 4.57% for FY-2025, is below with its 5-year median of 7.19%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11	13.3
Operating Profit Margin	13.97	13.97
Net Profit Margin	4.57	7.19

Q.9 Debt to Equity ratio of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Debt-to-Equity ratio is 0.71, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of JK Lakshmi Cement Ltd?

JK Lakshmi Cement Ltd Debt to cash flow from operations is 3.33, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JK Lakshmi Cement Ltd?

Promoters hold 45.12% of the JK Lakshmi Cement Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JK Lakshmi Cement Ltd vs industry peers?

JK Lakshmi Cement Ltd revenue CAGR is 8.90%, compared to the industry median CAGR of 6.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2	6.2
Gross Profit Growth	-24	NAN
Operating Profit Growth	-17.2	-3.8
Net Profit Growth	-42	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.84	0.82
ROE	8.24	7.62
ROCE	10.23	9.4
Cash Conversion Cycle (days)	20.93	23

Valuation & price assessment

Q.1 Stock return of JK Lakshmi Cement Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 6.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	6.4%	9.8%	-5.9%	-15.8%

Q.3 Valuation ratios of JK Lakshmi Cement Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	18.65	22.02	22.85
Price to Book	2.11	2.96	1.92
Price to Sales	1.22	1.51	1.40
EV to EBITDA	9.49	11.01	11.62

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