This cement stock generates 75 per cent of its power demand through internal sources

The stock surged 9 per cent today.

On November 4, the market closed in green. The S&P BSE Sensex closed at 60,950.36, up 0.19 per cent. About sectoral performance, Metals remained the Top Gainers, while IT was among the Top Losers. Regarding stock-specific action, JK Lakshmi Cement Ltd significantly outperformed the market today.    

Shares of JK Lakshmi Cement Ltd have surged 9 per cent and closed at Rs 575.5. The stock opened at Rs 571.85 and made an intraday high and low of Rs 638 and Rs 571.85, respectively. On November 3, the company announced its September Quarterly Results.  

JK Lakshmi Cement owns limestone mines and is one of the cement industry's most cost-effective producers in terms of freight and electricity consumption. The corporation generates around 75 per cent of its power consumption through internal capacity. It operates six cement plants in the states of Rajasthan, Chattisgarh, Gujarat, Haryana, and Odisha.

For the latest September quarter, the revenue figure stood at Rs 1374 crore. For the same quarter, the company generated a net profit of Rs 62 crore. 

For FY22, on a consolidated basis, the company reported a revenue of Rs 5420 crore and a net profit of Rs 478 crore. As per the FY22 period ending, the company’s ROE and ROCE stood at 20 per cent and 18.7 per cent, respectively.  

About the shareholding pattern, 46.31 per cent of the company’s stake is owned by the promoters, 12.84 per cent by FIIs, 24.66 per cent by DIIs, and the rest 16.18 per cent by non-institutional investors.    

The company has a market capitalisation of Rs 7282 crore and is currently trading at a PE multiple of 16.6x. The stock has a 52-week high and low of Rs 684 and Rs 366, respectively.