Initiating Coverage - JK Lakshmi Cement Ltd. - KJMC Research
Dear Sir / Madam, Please find attached company report on *JK Lakshmi Cement Ltd.*
At CMP of Rs 164, the stock trades at P/E of 4.8x and 4.7x FY08E and FY09E earnings of Rs 34 and Rs 35 respectively. On EV/EBIDTA basis, it trades at 4.5x and 3.6x FY08E and FY09E respectively. On EV/Tonne basis, the stock trades at USD 109 FY08E and USD 65 FY09E. We have valued the stock at EV/Tonne of USD 80, which is at discount of 11% to the current replacement cost of approx USD 90 per tonne. We initiate coverage on JKLC with a BUY recommendation and a 12-month price target of Rs 212, implying an upside of around 29% from its current market price.
Please get back to us for any clarifications.
