Buy JK Lakshmi Cement; target of Rs 640: Choice Institutional Equities

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Improving pricing momentum, with management expecting further price increases, supporting realisation recovery
  • Expected H2FY27 volume recovery of 7-8%
  • 4.6 MTPA capacity expansion across Durg, Madhubani, and UCWL by March 2028, driving long-term growth
  • Operating efficiencies, such as higher renewable energy contribution and lower shutdown-related expenses, to partly offset cost inflation

Thesis Validation Checklist

  • Watch for pricing momentum, with expected price increases of INR 10/bag in November and INR 10-15/bag in December
  • Monitor volume recovery in H2FY27, with a growth rate of 7-8%
  • Track capacity expansion progress, particularly the 4.6 MTPA expansion across Durg, Madhubani, and UCWL
  • Observe operating efficiencies, including power cost moderation and higher renewable energy contribution, to support margin recovery