JKCEMENT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Financial Strength & Profitability

Revenue & Profit Growth: Quarterly PAT of ₹336 Cr shows resilience, though slightly down from ₹379 Cr. The 65.6% quarterly profit variation signals strong YoY growth.

Return Metrics

ROE: 14.6% and ROCE: 14.5% — respectable, indicating efficient capital use.

EPS: ₹130 — strong earnings per share, supporting valuation.

Debt Profile: Debt-to-equity at 0.97 is on the higher side for the industry, but manageable given stable cash flows and expansion plans.

Dividend Yield: Low at 0.22%, suggesting reinvestment focus over income distribution.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 54.5 High vs. industry PE of 47.3 — priced at a premium.

P/B Ratio ~8.66 Expensive relative to book value ₹785.

PEG Ratio 12.7 Extremely high — growth not justifying valuation.

🔍 Conclusion: Overvalued based on traditional metrics. Market likely pricing in future capacity expansion and brand strength.

🏗️ Business Model & Competitive Edge

Diversified Cement Portfolio: Strong in grey and white cement, with premium positioning.

Expansion Strategy: Targeting 50mn MT capacity by 2030 — aggressive and capital-intensive.

Operational Efficiency: Green energy usage, reduced lead distances, and premium product mix enhance margins.

Brand Strength: Trusted name in North and Central India with growing international footprint.

📉 Technicals & Entry Zone

RSI: 51.4 — neutral, no strong momentum.

MACD: -38.2 — bearish signal.

DMA Levels: Current price above 50-DMA and 200-DMA — medium-term bullish trend.

📌 Suggested Entry Zone: ₹6,300–₹6,500 — closer to 50-DMA, offering better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals and expansion plans support long-term value.

Buy on Dips: Wait for valuation to cool or technical indicators to turn bullish.

Monitor: Debt levels, margin expansion, and execution of growth strategy.

Would you like a peer comparison or a discounted cash flow estimate next?

Edit in a page