JK Lakshmi Cement
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Management at JK Lakshmi Cement has adopted a cautious yet growth-oriented stance, focusing on operational efficiencies to counteract external cost pressures, particularly from volatile fuel and raw material prices. The company's strategic initiatives, including a shift towards renewable energy and a target of 30 million tons capacity by 2030, are expected to bolster long-term growth despite anticipated seasonal demand softness in Q2. Vista's financial outlook reflects stable revenue growth and margins, supported by these strategic priorities and a robust project pipeline. However, the company faces headwinds from rising costs and competitive pressures, which may challenge its ability to maintain pricing power. The cement industry is currently experiencing stable demand and improving pricing dynamics, which could provide a favorable backdrop for JK Lakshmi Cement's growth trajectory. Over the next 12-24 months, key opportunities include successful execution of expansion projects and enhanced operational efficiencies, while watchpoints include the impact of cost inflation and competitive dynamics on margins
Why We Like This Stock
- Strategic focus on renewable energy and operational efficiencies to mitigate cost pressures
- Commitment to achieving 30 million tons capacity by FY30, enhancing long-term growth potential
- Stable demand and improving pricing dynamics in the cement industry provide a favorable backdrop
Things To Watch Out For
- Rising fuel and raw material costs may pressure margins and limit pricing power
- Seasonal demand softness anticipated in Q2 could impact near-term revenue performance
- Intense competition and capacity additions in the industry may challenge margin stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,788 | 6,193 | 6,763 | 7,280 | 7,973 |
| Profit Before Tax (Cr.) | 708 | 423 | 578 | 522 | 611 |
| PBT Margin | 10.4% | 6.8% | 854.7% | 7.2% | 7.7% |
| Net Profit (Cr.) | 490 | 397 | 515 | 468 | 547 |
| Earnings Per Share | 39.5 | 32.1 | 41.4 | 37.6 | 44.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 730 | 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 |
| Motilal Oswal | ▲ Buy | 700 | 07-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 714 | 07-Aug-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, 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 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. Its products are used for the construction of individual home builders; monumental projects, such as bridges, airports, and dams; and railways, metro, roads, etc. The company was incorporated in 1938 and is based in New Delhi, India.