JK Lakshmi Cement Ltd (JKLAKSHMI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ACC

JK Lakshmi Cem.

Star Cement

India Cements

Birla Corpn.

Orient Cement

The Ramco Cement

Prism Johnson

Heidelberg Cem.

Nuvoco Vistas

JSW Cement

Why is JK Lakshmi Cement Ltd ?

High Management Efficiency with a high ROCE of 16.79%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.43 times

Poor long term growth as Net Sales has grown by an annual rate of 9.38% and Operating profit at 5.68% over the last 5 years

Flat results in Sep 25

PBT LESS OI(Q) At Rs 80.08 cr has Fallen at -30.2% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.64 times
PAT(Q) At Rs 80.90 cr has Fallen at -8.7% (vs previous 4Q average)

With ROCE of 14.6, it has a Attractive valuation with a 2.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.20%, its profits have risen by 35% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 35.38%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.20% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to JK Lakshmi Cem. should be less than 10%
Overall Portfolio exposure to Cement & Cement Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cement & Cement Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is JK Lakshmi Cem. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

JK Lakshmi Cem.

-8.09%

-0.28

28.90%

Sensex

4.84%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.38%

EBIT Growth (5y)

5.68%

EBIT to Interest (avg)

4.43

Debt to EBITDA (avg)

2.20

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.23

Tax Ratio

27.95%

Dividend Payout Ratio

15.68%

Pledged Shares

Institutional Holding

35.38%

ROCE (avg)

17.50%

ROE (avg)

14.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.51

EV to EBIT

14.14

EV to EBITDA

10.08

EV to Capital Employed

2.07

EV to Sales

1.62

PEG Ratio

0.71

Dividend Yield

0.82%

ROCE (Latest)

14.63%

ROE (Latest)

12.58%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PAT(Latest six months)

At Rs 231.07 cr has Grown at 357.06%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 5,295.20 cr

-6What is not working for the Company

PBT LESS OI(Q)

At Rs 80.08 cr has Fallen at -30.2% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.64 times

PAT(Q)

At Rs 80.90 cr has Fallen at -8.7% (vs previous 4Q average

Loading Valuation Snapshot...

Here's what is working for JK Lakshmi Cem.

Cash and Cash Equivalents - Half Yearly

Highest at Rs 5,295.20 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for JK Lakshmi Cem.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 80.08 cr has Fallen at -30.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 114.69 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 80.90 cr has Fallen at -8.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 88.65 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.64 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 22.67 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income