Three reasons why JK Cement should be on your watchlist

The working capital has reduced while the net debt /EBITDA has lowered for JK Cement.

Cement prices have touched the roof and the pricing power is back with the cement manufacturer. The cement stocks have been outperforming on the bourses lately. 

Here are the top three reasons why JK Cement should be part of your watchlist:- 

1. Above-industry average volume and utilisation:  JK Cement is a mid-cap cement manufacturer with a strong presence in North India. The company is expected to witness above-industry average volumes at around CAGR 12 per cent over the coming years. The expansion in North India is expected to help the company record good volumes in the coming years as the utilisation improves. JK Cement delivered strong volume growth across both grey (+48 per cent YoY) and white & putty (+24 per cent) segments, aided by healthy demand and low base effect.

2. Improving financials: The working capital has reduced while the net debt /EBITDA has lowered for JK Cement. This will help improve margins for the company. Various cost-cutting measures and increasing volumes will help keep the balance sheet strong. The cash flows are expected to be strong and the expansion in MP is expected to help the company achieve its growth targets. 

3.  Positive sentiment: JK Cement may gain owing to the positive sentiment around the cement sector as well as cement stocks.