JK Lakshmi Cement's Q1 FY25 Financial Results Show Mixed Performance, Stock Call 'Hold'

JK Lakshmi Cement, a midcap company in the cement industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for JK Lakshmi Cement is ‘Hold’.

The company has seen a negative financial performance in the quarter, with a score of -11 compared to 12 in the previous 3 months. However, there are some positive aspects to the company’s financials based on the June 2024 results.

One of the strengths of JK Lakshmi Cement is its debt-equity ratio, which is the lowest in the last five half-yearly periods at 0.65 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

On the other hand, there are some areas of concern for the company. The profit before tax (PBT) less other income has fallen by 36.0% to Rs 104.87 crore, compared to the average PBT of the previous four quarters at Rs 163.87 crore. This shows a negative trend in the near term.

Similarly, the profit after tax (PAT) has also fallen by 39.6% to Rs 70.30 crore, compared to the average PAT of the previous four quarters at Rs 116.46 crore. The operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments.

The company’s interest cost has also risen by 27.96% in the previous half-yearly period, signifying increased borrowings. The net sales for the quarter have also fallen to Rs 1,563.88 crore, the lowest in the last five quarters, with a negative trend in the near term.

In conclusion, JK Lakshmi Cement’s financial performance for the quarter ending June 2024 has been negative, with some strengths and weaknesses. The company’s stock call is ‘Hold’ according to MarketsMOJO, and investors should carefully consider these factors before making any investment decisions.