JKCEMENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | JKCEMENT | Market Cap | 40,852 Cr. | Current Price | 5,287 ₹ | High / Low | 7,566 ₹ |
| Stock P/E | 37.2 | Book Value | 833 ₹ | Dividend Yield | 0.28 % | ROCE | 14.5 % |
| ROE | 14.6 % | Face Value | 10.0 ₹ | DMA 50 | 5,488 ₹ | DMA 200 | 5,639 ₹ |
| Chg in FII Hold | -1.03 % | Chg in DII Hold | 1.26 % | PAT Qtr | 211 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 43.3 | MACD | 43.0 | Volume | 3,25,207 | Avg Vol 1Wk | 1,28,275 |
| Low price | 4,798 ₹ | High price | 7,566 ₹ | PEG Ratio | 8.69 | Debt to equity | 0.99 |
| 52w Index | 17.6 % | Qtr Profit Var | 5.47 % | EPS | 143 ₹ | Industry PE | 30.8 |
Financials: JK Cement shows moderate fundamentals with ROCE at 14.5% and ROE at 14.6%. EPS of ₹143 supports profitability, while quarterly PAT improved to ₹211 Cr. from ₹176 Cr. Debt-to-equity ratio of 0.99 indicates high leverage risk.
Valuation: P/E of 37.2 is above industry average (30.8), suggesting premium valuation. PEG ratio of 8.69 highlights stretched growth-adjusted pricing. Dividend yield of 0.28% is modest.
Business Model: JK Cement operates in the cement sector with strengths in diversified product lines and regional presence. Competitive advantage lies in brand recognition and steady demand, but margins face pressure from input costs.
Entry Zone: Reasonable entry between ₹5,000–₹5,200, near support levels below DMA 50 (₹5,488). Long-term holding requires monitoring debt levels and valuation compression.
Positive
- EPS of ₹143 reflects strong earnings base
- ROE (14.6%) and ROCE (14.5%) show moderate efficiency
- Quarterly PAT improved from ₹176 Cr. to ₹211 Cr.
- DII holdings increased (+1.26%), showing domestic confidence
Limitation
- High P/E (37.2) vs industry average (30.8) indicates overvaluation
- PEG ratio of 8.69 signals weak growth-adjusted valuation
- Debt-to-equity ratio of 0.99 raises leverage concerns
- RSI at 43.3 shows weak momentum
Company Negative News
- High leverage and stretched valuations limit attractiveness
- FII holdings reduced (-1.03%), showing foreign investor caution
Company Positive News
- Quarterly profit improvement (+5.47%) supports earnings momentum
- Positive MACD (43.0) indicates bullish technical bias
- Domestic institutional inflows add confidence
Industry
- Cement sector outlook remains positive with infrastructure demand
- Industry P/E at 30.8 highlights JK Cement trading at premium valuation
Conclusion
JK Cement presents moderate fundamentals with consistent earnings and sector demand, but high leverage and stretched valuations limit upside. Entry around ₹5,000–₹5,200 offers a cautious opportunity. Long-term investors should monitor debt management and valuation normalization while benefiting from industry growth.
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