Rising 6%, JK Lakshmi Cement's Q2 profit soars to 55%

 Rising 6%, JK Lakshmi Cement's Q2 profit soars to 55%

The stock of JK Lakshmi Cement has dropped 8.35 percent in value in the last six months. Over the same time, the benchmark Nifty has returned 5.73 percent.

Gains for JK Lakshmi Cement in the second quarter came from increased volume, improved product and sales mix, and lower fuel costs.

A day after revealing a 55% year-over-year increase in consolidated profit at Rs 96 crore for the July–September quarter of the current fiscal year, JK Lakshmi Cement surged by about 6% in early trading on November 3.

The business said in a filing on November 2 that the improvements were mostly due to lower fuel costs, improved product and sales mix, and increased volume.

Sales volume grew 13.8 percent to 28.78 lakh tons, resulting in a 14.6 percent rise in revenue to Rs 1,574.5 crore.

Broker Perspectives

In light of the outcome, Motilal Oswal has rated JK Lakshmi Cement as a "buy."

"JKLC exceeded our estimate for its consolidated 2QFY24 EBITDA, primarily due to higher-than-expected volume and realization." In a report released on November 2, it said that "consolidated EBITDA increased 33 percent YoY, which is 20 percent above our estimate."

Brokerage company Sharekhan expressed similar bullishness on JK Lakshmi Cement in a September report, recommending a "buy" recommendation with a target price of Rs 830.

The stock was up 5.63 percentage from the previous close as of 10.07 am on the National Stock Exchange, closing at Rs 712.15.

Over the last six months, the stock has lost 8.35 percent of its value. Over this time, the benchmark Nifty50 has returned 5.73 percent.