JK Cement Ltd Stock Analysis

BSE: 532644 | NSE: JKCEMENT | Cement & Construction Materials | Large Cap

BSE Share Price 23-Sep-2022 18:01
2665.15 -92.45 (-3.35%)

DeciZen - Make an Informed Decision on JK Cement

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

JK Cement Price Chart

P/E Ratio (SA) :
34.12
Market Cap :
20,593.2 Cr.
52-wk low :
2,005
52-wk high :
3,836.7
Bole Toh?

1. Is JK Cement Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that JK Cement Ltd is a average quality company.

2. Is JK Cement Ltd undervalued or overvalued?

The key valuation ratios of JK Cement Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is JK Cement Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of JK Cement Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of JK Cement:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JK Cement Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 11.7%5.8%7.4%6.7%9.4%11.7%9.9%12.6%12.5%11.6%-
Value Creation Index -0.2-0.6-0.5-0.5-0.3-0.1-0.3-0.10.10.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,9122,7963,3573,5553,7564,5914,9815,4646,3287,6798,211
YoY Gr. Rt. %--4%20.1%5.9%5.6%22.3%8.5%9.7%15.8%21.3%-
Adj EPS 33.613.922.213.931.950.842.170.981.68478.1
YoY Gr. Rt. %--58.8%60.3%-37.5%129.5%59.3%-17.1%68.5%15.2%2.9%-
BVPS (₹) 210.2220.7235.5241.7267.6307.1374.4404.9483.1550.3573.7
Adj Net Profit 23596.915597.1223355325548631649604
Cash Flow from Ops. 3841874345897127907111,0991,5691,009-
Debt/CF from Ops. 3.312.464.53.733.32.51.93.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.4%15.4%15.5%21.3%
Adj EPS 10.7%21.4%25.9%2.9%
BVPS 11.315.513.713.9
Share Price 26.2% 22.7% 36.7% -15.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 14.65.69.15.812.517.712.918.218.416.313.9
Op. Profit Mgn % 19.313.413.914.618.516.616.322.224.719.718.1
Net Profit Mgn % 8.13.54.62.75.97.76.510108.57.4
Debt to Equity 0.91.51.61.61.41.10.80.90.80.8-
Working Cap Days 91112101969189971091171270
Cash Conv. Cycle 3344372713491815230

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 15.52%

Net Profit is growing at healthy rate in last 3 years 25.93%

Debt to equity has declined versus last 3 years average to 0.76

Sales growth is good in last 4 quarters at 17.94%

Return on Equity has declined versus last 3 years average to 13.90%

Latest Financials - JK Cement Ltd.

Standalone Consolidated
TTM EPS (₹) 78.1 85.1
TTM Sales (₹ Cr.) 8,211 8,546
BVPS (₹.) 573.7 580.5
Reserves (₹ Cr.) 4,356 4,408
P/BV 4.65 4.59
PE 34.12 31.30
From the Market
52 Week Low / High (₹) 2005.00 / 3836.65
All Time Low / High (₹) 34.80 / 3836.65
Market Cap (₹ Cr.) 20,593
Equity (₹ Cr.) 77.3
Face Value (₹) 10
Industry PE 32.8

Management X-Ray of JK Cement :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of JK Cement

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About JK Cement Ltd

A leading cement manufacturer in the country, JK Cement Limited is an affiliate of the multi-disciplinary industrial conglomerate JK Organisation, which was founded by LalaKamlapat Singhania. The company’s operations commenced with commercial production at its first grey cement plant at Nimbahera, Rajasthan in May 1975. Subsequently, the company also set up 2 more units in Rajasthan at Mangrol and Gotan. In the year 2009, the company extended its footprint by setting up a green-field unit in Muddapur, Karnataka giving it access to the markets of south-west India. In the year 2014, the company further expanded its capacity in the north with brownfield expansion of 1.5 MnTPA integrated unit at Mangrol and split grinding unit of 1.5 MnTPA at Jhajjar. The new grinding units in Aligarh and Balasinor further strengthening JK Cement's growing footprints and making it one of the top cement manufacturers in the country.

JK Cement was the first company to install a captive power plant in the year 1987 at Bamania, Rajasthan and the first cement company to install a waste heat recovery power plant to take care of the need of green power. It is steadily enhancing its capacity, diversifying range of products, ushering in advanced technology and quality assurance, and above all, expanding its presence nationally and internationally. Its brands continue to enjoy the trust of millions of consumers for the high quality and innovation benchmarks that it has attained. Superior products and a strong Brand name, an extensive marketing and distribution network and the technical know-how represent JK Cement's abiding strengths.

Business area of the company

J.K. Cement Limited is engaged in cement business. The Company produces grey cement, white cement and water proof. The Company manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India. Grey cement produced by it consists of ordinary portland cement (OPC) and portland pozzolana cement (PPC). OPC has three grades, which consist of 53-grade, 43-grade and 33-grade. Its cement products are marketed under the brand names: J.K. Cement and Sarvashaktiman for OPC products; J.K. Super for PPC products, and J.K. White and Camel for white cement products.

Awards and Recognitions

Financial Year 2019-2020

  • JK Cement SwachhAbility Run bags CSR Campaign of the year and Build Safe (JK Super Cement) awarded the Best Social Media Campaign at Realty Awards in association with IGBC
  • JK Cement Ltd. honored with the title of 'India's Best Company of the year 2017
  • Golden Peacock Eco-Innovation Award
  • Gold at ACEF for SwachhAbility Run
  • Gold at ACEF for 'Bal Sabha at Diggi Mela'
  • Five Star Rating by IBM for Mangrol Mines
  • Brand Revitalization Award by GMEA
  • Best Place to Work in Cement Industry by IHRC
  • 2nd prize for 'Best Energy Efficiency Organization' by CII
  • Certificate of Excellence Gotan
  • Certificate of Excellence Nimbahera
  • Dr.Gaur HariSinghania Chairman, JK Cement Ltd being honoured with Lifetime Achievement Award by Justice Virendra Jain

Financial Year 2020-2021

  • Brand of the Year' in the 'Cement & Concrete' segment at Realty+ Interior and Exterior Awards 2020.
  • Prestigious Brands of Asia 2019 Award at Global Business Symposium, Malaysia.
  • The Prestigious Super brand Award for JK Wall Putty and JK White Cement.
  • 'Top Rankers Excellence Award for Marketing Leadership' by Top Rankers Management Club.
  • 9th Global Customer Engagement Awards for the JK Cement WallMaxX TVC.
  • JK Super Cement recognized by the Madhya Pradesh Police for 'Best initiative for Improved Road Safety'.
  • GERA Excellence Award 2019 (Global Entrepreneurship Recognition Award) for Innovative CSR Best Practices.
  • JK Super Cement conferred with 'Safety Campaign of the Year' and 'Long-term Rural Engagement Program of the Year' at ACEF Asian Leaders Awards 2019.
  • JK Cement awarded with the Best Growth Performance in the Cement category at Dun & Bradstreet Corporate Awards 2019.
  • 'Great Place to Work 2020' certification.
  • Top Challengers 2020 award by Construction World Magazine Awards 2020.
  • Platinum Award from Apex India Foundation for Excellence in Occupational Health & Safety.
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