⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JKCEMENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | JKCEMENT | Market Cap | 39,399 Cr. | Current Price | 5,101 ₹ | High / Low | 7,566 ₹ |
| Stock P/E | 35.9 | Book Value | 833 ₹ | Dividend Yield | 0.29 % | ROCE | 14.5 % |
| ROE | 14.6 % | Face Value | 10.0 ₹ | DMA 50 | 5,533 ₹ | DMA 200 | 5,706 ₹ |
| Chg in FII Hold | -0.68 % | Chg in DII Hold | 0.75 % | PAT Qtr | 211 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 36.7 | MACD | -169 | Volume | 50,364 | Avg Vol 1Wk | 57,937 |
| Low price | 4,390 ₹ | High price | 7,566 ₹ | PEG Ratio | 8.38 | Debt to equity | 0.99 |
| 52w Index | 22.4 % | Qtr Profit Var | 5.47 % | EPS | 143 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue Growth: PAT improved to ₹211 Cr from ₹176 Cr
- Profit Margins: Moderate with ROE at 14.6% and ROCE at 14.5%
- Debt Ratios: Debt-to-Equity at 0.99, relatively high for the sector
- Cash Flows: Dividend yield of 0.29% is minimal
- Return Metrics: Average efficiency compared to peers
💹 Valuation Indicators
- P/E Ratio: 35.9 (above industry average of 28.2, overvalued)
- P/B Ratio: ~6.1 (Price ₹5,101 / Book Value ₹833)
- PEG Ratio: 8.38 (very high, growth premium priced in)
- Intrinsic Value: Appears stretched given current multiples
🏢 Business Model & Competitive Advantage
- Leading cement manufacturer with strong brand presence
- Competitive advantage lies in scale and distribution network
- Exposure to infrastructure growth supports demand outlook
📈 Entry Zone Recommendation
- Current Price: ₹5,101
- Support Zone: ₹4,390 – ₹4,600 (near 52-week low, RSI at 36.7 indicates oversold)
- Long-term Holding: Suitable for investors with moderate risk appetite, but caution due to high debt and valuation
✅ Positive
- Strong brand and market leadership in cement industry
- Quarterly PAT growth (₹211 Cr vs ₹176 Cr)
- DII holdings increased (+0.75%), showing domestic investor confidence
⚠️ Limitation
- High debt-to-equity ratio (0.99) raises financial risk
- P/E and PEG ratios indicate overvaluation
- Dividend yield is minimal
📉 Company Negative News
- FII holdings decreased (-0.68%), reflecting reduced foreign confidence
- Technical indicators (MACD negative, trading below DMA 50 & DMA 200) suggest bearish trend
📈 Company Positive News
- Quarterly PAT improved (₹211 Cr vs ₹176 Cr)
- Strong industry demand outlook supports long-term growth
🌐 Industry
- Cement industry benefits from infrastructure and housing demand
- Industry P/E at 28.2 highlights JKCEMENT trading at a premium
🔎 Conclusion
JKCEMENT shows resilience with improving profitability and strong industry positioning, but high debt and stretched valuations limit upside. Entry around ₹4,390–₹4,600 may provide a better margin of safety. Long-term holding is viable for investors seeking exposure to infrastructure growth, but monitoring debt levels and valuation is essential.