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ICICI Securities: JK Lakshmi Cement Logs Strong Operating Show, Valuation Looks Attractive

JK Lakshmi’s standalone ebitda rose 26% year-on-year to Rs 1.9 billion on the back of higher-than-expected realisation and volumes

A worker transports cement in a wheel-barrow along a road in Ooty, Tamil Nadu, India. (Photographer: Dhiraj Singh/Bloomberg)
A worker transports cement in a wheel-barrow along a road in Ooty, Tamil Nadu, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

JK Lakshmi Cement Ltd.’s Q2 FY21 standalone Ebitda at Rs 1.9 billion (up 26% YoY) was significantly better than our/consensus estimates owing to higher than expected realisation and volumes.

Blended realisation increased 1% QoQ (declined 3.5% YoY), while volumes were up 16% YoY.

Consolidated net debt reduced by Rs 3 billion to Rs 12 billion as at September 2020-end aided by Rs 1 billion working capital release post capex of Rs 0.5 billion in H1 FY21.

Click on the attachment to read the full report:

ICICI Securities JK Lakshmi Cement Q2FY21 Results Update.pdf

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