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JKCEMENT - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.6
| Stock Code | JKCEMENT | Market Cap | 41,976 Cr. | Current Price | 5,432 ₹ | High / Low | 7,566 ₹ |
| Stock P/E | 38.4 | Book Value | 833 ₹ | Dividend Yield | 0.28 % | ROCE | 14.5 % |
| ROE | 14.6 % | Face Value | 10.0 ₹ | DMA 50 | 5,869 ₹ | DMA 200 | 5,814 ₹ |
| Chg in FII Hold | 1.01 % | Chg in DII Hold | -1.31 % | PAT Qtr | 176 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 38.3 | MACD | -86.0 | Volume | 53,561 | Avg Vol 1Wk | 59,892 |
| Low price | 4,219 ₹ | High price | 7,566 ₹ | PEG Ratio | 8.97 | Debt to equity | 0.99 |
| 52w Index | 36.3 % | Qtr Profit Var | 334 % | EPS | 146 ₹ | Industry PE | 33.2 |
📊 Financials Overview:
- Revenue & Profitability: PAT dropped from 332 Cr. to 176 Cr. (short-term weakness).
- Margins: ROE at 14.6% and ROCE at 14.5% indicate moderate efficiency.
- Debt: Debt-to-equity at 0.99 shows a leveraged balance sheet, but manageable.
- Cash Flow: Dividend yield at 0.28% is low, suggesting reinvestment focus.
💹 Valuation Indicators:
- P/E Ratio: 38.4 vs Industry PE of 33.2 → slightly overvalued.
- P/B Ratio: Current Price / Book Value ≈ 6.5 → premium valuation.
- PEG Ratio: 8.97 → indicates expensive growth.
- Intrinsic Value: Current price (₹5,432) is above fair zone; undervaluation only near ₹4,200–₹4,500.
🏢 Business Model & Competitive Advantage:
- JK Cement is a leading player in grey and white cement with strong brand presence.
- Competitive edge in white cement segment, where it holds significant market share.
- Expansion and modernization projects support long-term growth.
📈 Entry Zone & Holding Guidance:
- Entry Zone: Attractive near ₹4,200–₹4,500 (close to 52-week low).
- Long-Term Holding: Suitable for investors seeking exposure to cement industry growth, but valuation risks remain.
Positive
- Strong brand presence in white cement.
- Improving FII holdings (+1.01%).
- Healthy ROE and ROCE above 14%.
Limitation
- High P/E and PEG ratios indicate overvaluation.
- Debt-to-equity close to 1, showing reliance on borrowings.
- Dividend yield is very low.
Company Negative News
- Quarterly PAT fell sharply from 332 Cr. to 176 Cr.
- DII holdings reduced (-1.31%).
Company Positive News
- Quarterly profit variation shows resilience (334% YoY growth).
- Strong expansion plans in grey and white cement capacity.
Industry
- Cement industry PE at 33.2, slightly lower than JKCement’s valuation.
- Sector benefits from infrastructure push and housing demand in India.
Conclusion
⚖️ JKCement is a fundamentally strong company with a niche in white cement and steady returns. However, current valuations are stretched, and debt levels are notable. Best considered for long-term holding if accumulated near the ₹4,200–₹4,500 range, aligning with intrinsic value and technical support zones.
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