Equity Watch

JK Lakshmi Cement is Risk Free Pick in uncertain times

JK Lakshmi Cement in its 25th year is like a beautiful young bride everyone will like to bring home.With cement capacity expanding to 5 million tonnes,from existing 3.5 million tonnes and a 2.7 million tonne Green field plant being set up at Chhatisgarh entailing an investment of Rs. 1100 crore,company’s capacity will more than double in next 3 years.Company has posted excellant results for FY08.

Scrip Code : 500380    Company Name : JK Lakshmi Cement Ltd

Type Audited Audited Audited Audited
Period Ending 31 Mar 08 31 Mar 07 31 Mar 06 31 Mar 05
No Of Months 12 12 12 12
Description Value(Rs. million)
Net Sales / Interest Earned / Operating Income 11,076.60 8,438.30 5,824.80 4,867.80
Other Income 67.10 32.80 79.00 97.70
Total Income 11,143.70 8,471.10 5,903.80 4,965.50
Expenditure -7,773.80 -5,878.20 -4,615.70 -4,191.50
Operating Profit 3,369.90 2,592.90 1,288.10 774.00
Interest -278.50 -361.40 -194.90 -44.00
Profit Before Depreciation and Tax 3,091.40 2,231.50 1,093.20 730.00
Depreciation -585.40 -443.30 -530.70 -489.50
Profit before Tax 2,506.00 1,788.20 562.50 240.50
Tax -269.30 -7.10 -8.00 4.30
Profit after Tax 2,236.70 1,781.10 554.50 244.80
Extraordinary Items 15.70
Net Profit 2,236.70 1,781.10 554.50 260.50
Equity Capital 611.90 570.90 497.70 552.90
Reserves 5,734.90 3,319.80 1,297.60 1,060.60
Basic And Diluted EPS after Extraordinary item 32.34 11.14 4.71
Basic EPS after Extraordinary items 38.72
Diluted EPS after Extraordinary items 37.72
Nos. of Shares – Public 32,770,783.00 32,865,914.00 29,912,905.00 33,434,996.00
Percent of Shares-Public 53.57 57.58 60.12 60.45
Operating Profit Margin 30.42 30.73 22.11 15.90
Net Profit Margin 20.19 21.11 9.52 5.35
Cash EPS 46.12
  Notes Notes Notes Notes
  Detailed      

Results reproduced from BSEINDIA

 

Company has detailed its expansion plans in the press release recently.

Company’s market capitalisation at CMP of Rs. 111 is Rs. 680 crores,which gives an enterprise value of 5 million tonne plant at just Rs. 182 crore/million tonne or US $ 46 per  tonne of cement capacity vs. US $ 102 per tonne as envisaged in the Green field project.Share is available at P/E of less than 3 and is a value BUY at CMP.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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