BSE:500380

Stock Analysis Report

JK Lakshmi Cement

Executive Summary

JK Lakshmi Cement Limited, together with its subsidiaries, manufactures and supplies cement in India.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has JK Lakshmi Cement's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500380's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

500380

0.2%

IN Basic Materials

1.4%

IN Market


1 Year Return

-43.6%

500380

-29.1%

IN Basic Materials

-30.7%

IN Market

Return vs Industry: 500380 underperformed the Indian Basic Materials industry which returned -27.7% over the past year.

Return vs Market: 500380 underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

500380IndustryMarket
7 Day-2.8%0.2%1.4%
30 Day-34.8%-27.5%-24.8%
90 Day-34.9%-28.9%-30.6%
1 Year-42.8%-43.6%-28.7%-29.1%-29.3%-30.7%
3 Year-56.1%-56.8%-29.6%-30.8%-18.1%-22.6%
5 Year-45.3%-46.6%-6.7%-9.5%-7.2%-12.2%

Price Volatility Vs. Market

How volatile is JK Lakshmi Cement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is JK Lakshmi Cement undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500380 (₹197.7) is trading below our estimate of fair value (₹428.23)

Significantly Below Fair Value: 500380 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500380 is poor value based on its PE Ratio (12.2x) compared to the Basic Materials industry average (10.4x).

PE vs Market: 500380 is poor value based on its PE Ratio (12.2x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 500380 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 500380 is overvalued based on its PB Ratio (1.5x) compared to the IN Basic Materials industry average (0.6x).


Next Steps

Future Growth

How is JK Lakshmi Cement forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500380's forecast earnings growth (23.7% per year) is above the savings rate (6.5%).

Earnings vs Market: 500380's earnings (23.7% per year) are forecast to grow faster than the Indian market (19.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500380's revenue (7.7% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 500380's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500380's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has JK Lakshmi Cement performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500380 has high quality earnings.

Growing Profit Margin: 500380's current net profit margins (4.2%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 500380's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: 500380's earnings growth over the past year (263.3%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: 500380 earnings growth over the past year (263.3%) exceeded the Basic Materials industry 21.9%.


Return on Equity

High ROE: 500380's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is JK Lakshmi Cement's financial position?


Financial Position Analysis

Short Term Liabilities: 500380's short term assets (₹12.3B) do not cover its short term liabilities (₹17.4B).

Long Term Liabilities: 500380's short term assets (₹12.3B) do not cover its long term liabilities (₹18.7B).


Debt to Equity History and Analysis

Debt Level: 500380's debt to equity ratio (100.5%) is considered high.

Reducing Debt: 500380's debt to equity ratio has reduced from 140.5% to 100.5% over the past 5 years.

Debt Coverage: 500380's debt is well covered by operating cash flow (48.4%).

Interest Coverage: 500380's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: 500380 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500380's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is JK Lakshmi Cement's current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500380's dividend (1.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: 500380's dividend (1.26%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 500380's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500380's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.6%), 500380's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500380's dividends in 3 years are forecast to be thoroughly covered by earnings (4.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.6yrs

Average management tenure


CEO

Bharat Singhania (81yo)

13.5s

Tenure

Mr. Bharat Hari Singhania has been the Managing Director of JK Tyre & Industries Ltd., since October 2006. Mr. Singhania has been the Chairman and Managing Director of JK Lakshmi Cement Ltd. since May 29,  ...


CEO Compensation Analysis

Compensation vs Market: Bharat's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD356.20K).

Compensation vs Earnings: Bharat's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bharat Singhania
Chairman & MD13.5yrsno data0.43% 98.5m
Vinita Singhania
Vice Chairman & MD6.92yrsno data0.20% 46.4m
Sudhir Bidkar
Chief Financial Officerno data₹28.90m0.00015% 34.5k
Brijesh Daga
Senior VPno data₹11.30mno data
Sushil Wali
Whole-Time Director17.75yrsno datano data
Shailendra Chouksey
Whole-Time Director17.75yrsno datano data
C. Bagga
Vice President of Accounts & Finance no datano datano data
Chittur Sadasivan
Chief Executive of Marketing13.58yrsno datano data
Rakesh Gupta
Head of Human Resourcesno datano datano data
P. Mehta
Senior Vice President of Works and Plant Head of Sirohino datano datano data

13.6yrs

Average Tenure

68yo

Average Age

Experienced Management: 500380's management team is seasoned and experienced (13.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bharat Singhania
Chairman & MD13.5yrsno data0.43% 98.5m
Vinita Singhania
Vice Chairman & MD6.92yrsno data0.20% 46.4m
Sushil Wali
Whole-Time Director17.75yrsno datano data
Shailendra Chouksey
Whole-Time Director17.75yrsno datano data
Bhupendranath Bhargava
Independent Non-Executive Director22.58yrs₹1.00m0.0057% 1.3m
Raghupati Singhania
Non-Independent & Non-Executive Director28.83yrs₹1.20m0.29% 67.9m
Kashi Memani
Independent Non-Executive Director10.75yrs₹1.00mno data
Ravi Jhunjhunwala
Independent Non-Executive Director7.67yrs₹1.20mno data
Nand Khaitan
Independent Non-Executive Director25.67yrs₹1.40m0.014% 3.1m
Bhaswati Mukherjee
Independent Non Executive Woman Director1.08yrsno datano data

14.3yrs

Average Tenure

68yo

Average Age

Experienced Board: 500380's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500380 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JK Lakshmi Cement Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JK Lakshmi Cement Limited
  • Ticker: 500380
  • Exchange: BSE
  • Founded: 1938
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹23.028b
  • Shares outstanding: 117.67m
  • Website: https://www.jklakshmicement.com

Location

  • JK Lakshmi Cement Limited
  • Nehru House
  • 4, Bahadur Shah Zafar Marg
  • New Delhi
  • Delhi
  • 110002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500380BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1992
JKLAKSHMINSEI (National Stock Exchange of India)YesEquity SharesININRJan 1992

Biography

JK Lakshmi Cement Limited, together with its subsidiaries, manufactures and supplies cement in India. It offers Portland Pozzolana blended cement, and 53 grade and 43 grade ordinary Portland cement under the JK LAKSHMI CEMENT and JK Lakshmi PRO+ Cement names for use in various R.C.C. and industrial works, plastering, underground structures, dams, heavy machinery foundations, marine structures, hydropower stations, high-rise buildings, pre-stressed concrete works, railway sleepers and concrete poles, commercial buildings, industrial constructions, multi-storeyed complexes, cement concrete roads, and heavy duty floors. The company also provides ready mix concrete under the JK Lakshmi Power Mix name; autoclaved aerated concrete blocks under the JK SmartBlox name; gypsum plaster products under the JK Lakshmiplast name; and gypsum-based plaster products. It markets its products through a network of dealers in Rajasthan, Gujarat, Haryana, Delhi, Uttar Pradesh, Punjab, Jammu and Kashmir, Madhya Pradesh, Chattisgarh, Odisha, South Bengal, Vidharbha, Mumbai, and Pune. JK Lakshmi Cement Limited was incorporated in 1938 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:49
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.