Dividend Paying Midcap Stock: Cement Manufacturer Begins 1.5 MnTPA Grinding Capacity At New Facility

Dividend-paying midcap stock, JK Cement share price will be in focus on Monday as the company has commenced 1.5 MNTPA grinding capacity at a new facility in Madhya Pradesh. The cement company has a strong track record of rewarding dividends to its shareholders since 2006.

In its regulatory filing on Saturday, JK Cement said, "This is to inform that JK Cement Works, Ujjain A Unit of the Company has successfully commenced Cement Grinding capacity of 1.5 MnTPA.. i.e. 25th November 2023 at its newly set up cement manufacturing facilities situated at Ujjain, Madhya Pradesh."

JK Cement's complete portfolio involves Grey Cement, White Cement (WhitemaxX); value-added products like wall putty, gypsum plaster, tile adhesives & grouts, wood finishes and paints.

As of September 30, 2023, the company's grey cement capacity stood at 20.7 MTPA, while while cement and wall capacity was at 2.21 MTPA in India. Further, its green power capacity stood at 151.13 MW, and its captive solar and wind power capacity was at 86.83 MW.

By the end of Q2FY24, the company's capacity utilisation was at 75%, while grey volume was at 3.9 million tons. The company's net sales realisation stood at Rs 4,985 per ton, and blended cement/trade mix was at 69% each. Premium products accounted for 13% of trade sales.

Also, in Q2FY24, net sales stood at Rs 2476 crore, up by 19% YoY, while revenue from operations came in at Rs 2571 crore, registering a growth of 20% YoY. EBITDA witnessed a strong growth of 47% YoY to Rs 447 crore, and margins expanded by 340 bps year-on-year to 18%. PAT logged robust growth of 43% YoY to Rs 179 crore.

Coming to dividends, in Q2FY24, the company turned ex-dividend on August 1, 2023, for a dividend payout of Rs 15 per share. As per Trendlyne data, JK Cement has declared 19 dividends since July 2006.

At the current market price, JK Cement has a dividend yield of 0.43%. Last week, on Friday, JK Cement shares hit a new 52-week high of Rs 3,559.15 apiece during trading hours. The stock ended at Rs 3528.45 apiece, marginally up with m-cap of Rs 27,257.75 crore.

Year-to-date, JK Cement shares have gained by at least 18.5% on the exchange.

JK Cement Share Price Targets:

At the latest, brokerage Elara Capital has recommended to 'Accumulate' JK Cement shares for a target price of Rs3,823 apiece.

On the contrary, Kotak Institutional Equities recommended 'SELL' for a fair value of Rs 2,600.

Meanwhile, brokerage Motilal Oswal has suggested 'BUY' for a target price of Rs 3,900.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.