This cement stock will go up to ₹ 950, ready for a big jump after the results, brokerage said – buy

Cement Stocks to Buy : Companies listed on the stock market are announcing their first quarter results. Cement company JK Lakshmi Cement has also announced its June quarter results this week. After the results, brokerage house Axis Direct has maintained a buy bet on cement stock JK Lakshmi Cement. The brokerage says that the company's operational performance has been mixed.

JK Lakshmi Cement Share Price Target
Brokerage house Axis Direct has recommended buying cement company JK Lakshmi Cement after the results. The target price of the stock is Rs 950. On August 2, 2024, the stock closed down 1.55 per cent at Rs 848.50. At this price, the stock can go up by another 12 per cent. A buy recommendation has been issued on the stock for 12 to 18 months.

The brokerage said that the company is making good progress with a capital expenditure of Rs 220 crore and is expected to be commissioned in phases during FY25-26. considered. Further, the company plans to increase capacity by 4.6 MTPA for cement grinding and 2.3 MTPA for clinker with a total capital cost of Rs 2500 crore (USD 65/tonne), which will be commissioned in phases in FY26-27. This is expected to increase the company's market share and revenue. We estimate the company to achieve CAGR volume growth of 7 per cent during FY24-26E.

According to the brokerage report, the company plans to focus on several key initiatives to improve performance, including optimising geo-mix, increasing production and sales of blended cement, increasing tray sales volumes and reducing premiums, and promoting value-added products. With the government's emphasis on infrastructure development and increased budget allocation for housing and road projects, the cement sector outlook for the coming year is favourable, the brokerage said.

JK Lakshmi Cement Share History
Looking at the performance of the cement stock, it has given investors a return of 33 per cent in the last one year. The stock is down six per cent so far this year. On the BSE, the cement stock has a 52-week high of 998.40 and a 52-week low of 622.55. The market cap of the company is Rs 9,984.31 crore.