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JK Cement Jumps 7% To Hit 52-Week High On Strong Q3 Results

By Staff
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On Wednesday, shares of JK Cement Ltd rose over 7% to touch a 52-week high of Rs 2,428 as the stock continued to rally on the back of the regional cement manufacturer's quarterly results.

 

On Monday, the company reported a nearly 75% increase in its consolidated net profit for the December-ended quarter at Rs 217.28 crore when compared to Rs 124.29 crore a year ago.

JK Cement Jumps 7% To Hit 52-Week High On Strong Q3 Results

JK Cement's revenue from operations in the latest December quarter climbed around 25% to Rs 1,832.71 crore compared to the same period a year ago.

A key highlight of the results was its year-on-year cement volume growth of 25% to 2.76 million tonne, which was aided by recently added capacities. The management has also approved setting up a greenfield 4 mtpa (million tonnes per annum) cement capacity in central India.

Analysts and investors are betting on the expansion of the company's production volumes.

"After expanding its capacity in North by 4.2mtpa, which is still being ramped up, JKCE has announced another lucrative 4mtpa expansion in Central. These expansions bring three significant advantages to the company: (i) they strengthen its market share in North and Central, the most attractive regions in the country; (ii) they reduce the share of South in the volume mix to just ~12%; and (iii) they lower costs as ~90% of the grey cement capacity post expansion would be fuel-efficient," said analysts at Motilal Oswal Financial Services Ltd in a recent report.

Read more about: jk cement
Story first published: Wednesday, February 10, 2021, 12:43 [IST]
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