JK Lakshmi Cement up 6% as Q2 profit zooms 55%

JK Lakshmi Cement jumped nearly 6 percent in the early trade on November 3, a day after reporting a 55 percent on-year growth in consolidated profit at Rs 96 crore for the July-September quarter of the current financial year.

The gains were driven by higher volume, better product & sales mix and a reduction in fuel costs, the company said in a filing on November 2.

Revenue increased 14.6 percent to Rs 1,574.5 crore, with sales volume rising 13.8 percent to 28.78 lakh tonnes.

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Brokerage Views

Motilal Oswal has assigned a “buy” rating to the JK Lakshmi Cement following the result.

“JKLC’s consolidated 2QFY24 EBITDA was above our estimate, led by higher than-estimated volume and realization. Consolidated EBITDA increased 33 percent YoY, which is 20 percent above our estimate,” it said in a November 2 report.

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In a September report, brokerage firm Sharekhan too was bullish on JK Lakshmi Cement with a “buy” call and a target price of Rs 830.

At 10.07 am, the stock was trading at Rs 712.15 on the National Stock Exchange, up 5.63 percent from the previous close.

The stock has lost 8.35 percent of its value over the past six months. The benchmark Nifty50 has given a return of 5.73 percent during the period.

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