JKCEMENT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s a deep-dive analysis of JK Cement based on the provided data 📊

🧾 Core Financials

Profitability

ROCE (14.0%) and ROE (13.9%) are solid, showing decent returns on capital and equity.

EPS of ₹129 reflects healthy earnings per share.

Growth Metrics

Qtr Profit Var of 75.4% shows strong YoY quarterly profit growth.

However, PAT dipped from ₹360 Cr. to ₹324 Cr. QoQ, indicating some recent moderation.

Leverage

Debt-to-equity of 0.99 signals high leverage—acceptable for capital-intensive sectors like cement, but something to monitor.

Cash Flow & Dividend

No cash flow data provided.

Dividend Yield of just 0.23% suggests a low income-generating focus.

📈 Valuation Metrics

Metric Value Interpretation

P/E Ratio 54.8 Highly valued vs. sector avg (51.1)

P/B Ratio ~8.25 Suggests premium pricing

PEG Ratio 12.6 Very high—implies overvaluation

The valuation ratios indicate JK Cement is trading at a steep premium, likely pricing in strong future growth—but possibly overextended.

🧠 Business Model & Competitive Edge

JK Cement operates in a highly competitive and cyclical industry, but has built a strong brand and consistent market share.

Its scale and geographic diversification offer resilience.

The recent increase in FII holdings (+1.42%) implies growing institutional interest—often a bullish signal.

DII holdings falling (-1.45%), however, suggests mixed sentiment locally.

📍 Technical & Entry Zone Guidance

Current Price: ₹6,502

DMA-50: ₹6,048

DMA-200: ₹5,185

Suggests strong momentum and a bullish trend.

📌 Entry Zone Recommendation

If you're a long-term investor, consider accumulating around ₹5,850–₹6,100, closer to the 50 DMA, especially if broader market sentiment weakens.

RSI at 60.1 shows it’s not overheated yet but approaching resistance.

🕰️ Long-Term Holding Outlook

Fundamentally healthy with good ROE and growth.

Valuation looks rich, so long-term investors should track earnings growth and debt levels closely.

Cement demand is tied to infrastructure growth, which remains robust in India—a tailwind for JK Cement.

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