JK Lakshmi Cement
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
JK Lakshmi Cement is currently navigating a pivotal growth phase, driven by management's focus on capacity expansion and operational efficiency. The company has successfully increased its total capacity to 16.5 MTPA, with a target of 30 MTPA by FY30, supported by strategic investments in renewable energy and digital transformation. However, management remains cautious due to external cost pressures from volatile fuel prices and inflation in raw materials, which are expected to impact margins in the near term. Vista's financial outlook reflects stable revenue growth consistent with historical performance, while margins are anticipated to remain broadly stable despite slight compression. The improving pricing power within the cement industry, alongside stable demand from infrastructure projects, supports Vista's forecast of a 24.57% expected upside. Over the next 12-24 months, key opportunities include successful execution of expansion projects and enhanced operational efficiencies, while watchpoints include potential margin pressures from rising costs and competitive pricing dynamics. Overall, JK Lakshmi Cement's long-term growth narrative remains intact, but vigilance is warranted as the company balances growth ambitions with cost management strategies
Why We Like This Stock
- Successful capacity expansion to 16.5 MTPA with a target of 30 MTPA by FY30 supports long-term growth
- Management's focus on renewable energy and operational efficiencies aims to mitigate rising costs
- Improving pricing power in the cement industry enhances profitability potential
Things To Watch Out For
- Volatile fuel prices and inflationary pressures on raw materials are expected to weigh on margins
- Competitive pricing dynamics may challenge the company's ability to pass on cost increases
- Seasonal demand softness and planned maintenance could impact near-term performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,788 | 6,193 | 6,763 | 7,267 | 7,945 |
| Profit Before Tax (Cr.) | 708 | 423 | 578 | 565 | 635 |
| PBT Margin | 10.4% | 6.8% | 8.5% | 7.8% | 8.0% |
| Net Profit (Cr.) | 490 | 397 | 515 | 507 | 569 |
| Earnings Per Share | 39.5 | 32.1 | 41.4 | 40.7 | 45.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 730 | 07-Aug-2026 |
| Motilal Oswal | ▲ Buy | 700 | 07-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 714 | 07-Aug-2026 |
| BOB Capital Markets | ▼ Sell | 571 | 22-May-2026 |
| Choice Equity | ▲ Buy | 855 | 22-May-2026 |
| Elara Capital | ► Accumulate | 734 | 22-May-2026 |
| HDFC Securities | ▲ Buy | 780 | 22-May-2026 |
Company Overview
Show Company Profile
JK Lakshmi Cement Limited manufactures and supplies cement in India. The company provides an array of cement products, including portland cement, portland pozzolana cement, portland slag cement and composite cement; and value-added products and services, including ready-mixed concrete, gypsum plaster, wall putty, primer, fly ash blocks, autoclaved aerated blocks, and adhesives. The company offers its products under the JK Lakshmi Cement, Platinum Heavy Duty Cement, JK Lakshmi PRO+ Cement, Platinum Supremo Cement, JK Lakshmi Classic Gypsum Plaster, JK Lakshmi Classic Wall Putty, JK Lakshmi Tile Adhesives, JK Lakshmi Green+ Cement, Platinum Heavy Duty Cement, JK Lakshmi White Cement, JK Lakshmi Concrete, JK Lakshmi Mortar, JK Lakshmi Wall Primer, and JK Lakshmi Fly-Ash Block brand names. It serves home builders, masons and contractors, architects, and engineers channel partners. The company was incorporated in 1938 and is based in New Delhi, India.