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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532644 | NSE: JKCEMENT

J K Cements Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:53 pm

Market Cap 30,540 Cr.
Current Price 3,952
High / Low4,896/3,474
Stock P/E42.1
Book Value 715
Dividend Yield0.38 %
ROCE15.8 %
ROE15.9 %
Face Value 10.0
PEG Ratio10.48

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for J K Cements Ltd

Competitors of J K Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,16,116 Cr. 10,95512,138/8,54448.1 2,1260.64 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,622 Cr. 9151,058/70078.4 3020.27 %8.17 %5.63 % 1.00
The India Cements Ltd 11,009 Cr. 355386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 6,986 Cr. 173256/16235.3 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,538.04 Cr1,744.1734.83528.440.62%11.13%16.10%7.13

All Competitor Stocks of J K Cements Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,7141,8952,0302,3512,2722,2282,4362,7782,7632,7532,9353,1062,808
Expenses1,3111,5651,6651,9671,8661,9232,1892,4282,3552,2862,3102,5462,321
Operating Profit403330366384406305247350408467625560486
OPM %24%17%18%16%18%14%10%13%15%17%21%18%17%
Other Income27482642152219381729385545
Interest62647173656779101109115114115110
Depreciation81848791106106118132135141140153147
Profit before tax28723023426225015469154181241409347273
Tax %34%35%40%24%36%28%46%31%37%27%31%37%32%
Net Profit19015014019916111137107113176284220185
EPS in Rs24.8419.5918.4726.0321.0614.545.0514.1714.8422.6936.7328.4423.98

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,9072,7903,4014,3624,0104,8545,2595,8026,6067,9919,72011,55611,601
Expenses2,3482,4372,9483,8163,2844,0644,4204,5565,0226,4788,3939,4859,463
Operating Profit5593534535467267898391,2461,5851,5131,3272,0712,138
OPM %19%13%13%13%18%16%16%21%24%19%14%18%18%
Other Income474867507911076536711275129168
Interest140153229305303284261276253270312453455
Depreciation129134146197217231241288306342462573581
Profit before tax338114144942863834127341,0931,0136281,1741,270
Tax %32%34%2%41%40%25%36%34%36%33%34%33%
Net Profit2307514255172286264483703679416790864
EPS in Rs33.0011.0320.548.2725.4241.4134.9963.7391.8588.9354.82102.35111.84
Dividend Payout %20%27%19%48%31%24%29%12%16%17%27%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-67.39%89.33%-61.27%212.73%66.28%-7.69%82.95%45.55%-3.41%-38.73%89.90%
Change in YoY Net Profit Growth (%)0.00%156.72%-150.60%273.99%-146.45%-73.97%90.65%-37.41%-48.96%-35.32%128.64%

J K Cements Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:17%
3 Years:20%
TTM:6%
Compounded Profit Growth
10 Years:27%
5 Years:25%
3 Years:3%
TTM:64%
Stock Price CAGR
10 Years:20%
5 Years:28%
3 Years:6%
1 Year:14%
Return on Equity
10 Years:14%
5 Years:16%
3 Years:14%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 10:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital70707070707077777777777777
Reserves1,6211,6761,5471,5171,6411,9052,6252,9503,6594,2484,6075,2905,449
Borrowings1,3782,7833,2293,3233,3172,9412,9733,5033,6264,1155,2925,5495,738
Other Liabilities9391,2341,2051,2751,3831,5411,7372,0112,5092,9633,3313,8864,111
Total Liabilities4,0085,7646,0516,1856,4116,4567,4138,5429,87211,40313,30714,80215,375
Fixed Assets2,3692,3274,0744,2544,5424,4434,5375,5545,9376,5448,4679,2989,472
CWIP2551,7883373211271045745305091,032592464515
Investments32683779801194384614221692368448
Other Assets1,3521,5821,6031,5321,6621,7891,8632,4123,2833,6124,1554,6724,940
Total Assets4,0085,7646,0516,1856,4116,4567,4138,5429,87211,40313,30714,80215,375

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3823642565807728837041,3721,5938781,3771,959
Cash from Investing Activity +-527-1,558-478-408-668-79-825-1,483-1,348-984-1,964-1,626
Cash from Financing Activity +871,227230-193-346-723173-113-13762741-416
Net Cash Flow-58338-21-2428152-225108-44154-83

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow558.00351.00450.00543.00723.00787.00837.00-2.00-2.00-3.00-4.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days141519181818181720201818
Inventory Days438466345258292269257288257343223235
Days Payable187378196160222303179205204203188185
Cash Conversion Cycle26610216911688-1796100731595368
Working Capital Days-2-106-12-7-9-12-120583339
ROCE %16%7%8%8%12%14%13%17%20%17%10%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters57.62%51.50%45.82%45.84%45.84%45.84%45.83%45.80%45.80%45.70%45.70%45.70%
FIIs17.39%17.72%16.47%16.06%15.63%15.88%15.54%15.50%14.40%15.25%15.92%17.71%
DIIs20.10%19.82%20.65%21.09%21.91%21.85%22.46%23.15%24.25%24.01%23.37%22.06%
Public4.89%10.96%17.06%17.01%16.63%16.42%16.17%15.54%15.54%15.00%14.99%14.52%
No. of Shareholders78,50077,46190,70189,86282,39176,44475,76371,76472,58268,18177,58079,162

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan2,318,6162.081017.64500,2962024-11-20363.45%
Axis Midcap Fund1,106,4051.61485.6500,2962024-11-20121.15%
DSP Mid Cap Fund987,6742.27433.49500,2962024-11-2097.42%
Kotak Equity Opportunities Fund - Regular Plan850,0001.55373.07500,2962024-11-2069.9%
SBI Magnum Midcap Fund713,7741.54313.28500,2962024-11-2042.67%
Mirae Asset Focused Fund509,8492.71223.77500,2962024-11-201.91%
Kotak Small Cap Fund - Regular Plan504,9091.33221.6500,2962024-11-200.92%
PGIM India Midcap Opportunities Fund500,2961.99219.58500,2962024-11-200%
Canara Robeco Emerging Equities473,5320.87207.83500,2962024-11-20-5.35%
Franklin India Prima Fund442,7391.62194.32500,2962024-11-20-11.5%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)102.3555.1787.9090.9962.56
Diluted EPS (Rs.)102.3555.1787.9090.9962.56
Cash EPS (Rs.)176.34113.54132.25130.6299.83
Book Value[Excl.RevalReserv]/Share (Rs.)688.71600.81555.29480.28389.22
Book Value[Incl.RevalReserv]/Share (Rs.)688.71600.81555.29480.28389.22
Revenue From Operations / Share (Rs.)1495.541257.981034.17854.96750.84
PBDIT / Share (Rs.)285.34181.41210.34213.75168.09
PBIT / Share (Rs.)211.24122.10166.02174.13130.82
PBT / Share (Rs.)151.8881.70131.12141.4195.05
Net Profit / Share (Rs.)102.2354.2487.9390.9962.56
NP After MI And SOA / Share (Rs.)102.3555.1788.9391.8563.73
PBDIT Margin (%)19.0714.4220.3325.0022.38
PBIT Margin (%)14.129.7016.0520.3617.42
PBT Margin (%)10.156.4912.6716.5412.65
Net Profit Margin (%)6.834.318.5010.648.33
NP After MI And SOA Margin (%)6.844.388.5910.748.48
Return on Networth / Equity (%)14.739.0915.8818.9916.26
Return on Capital Employeed (%)14.319.1214.6916.9915.04
Return On Assets (%)5.343.206.027.185.76
Long Term Debt / Equity (X)0.770.870.690.800.89
Total Debt / Equity (X)0.971.070.890.840.95
Asset Turnover Ratio (%)0.820.800.750.710.71
Current Ratio (X)1.301.271.321.631.22
Quick Ratio (X)0.950.930.861.240.84
Inventory Turnover Ratio (X)1.651.321.241.401.39
Dividend Payout Ratio (NP) (%)14.6527.1816.860.0027.46
Dividend Payout Ratio (CP) (%)8.5013.1011.250.0017.32
Earning Retention Ratio (%)85.3572.8283.140.0072.54
Cash Earning Retention Ratio (%)91.5086.9088.750.0082.68
Interest Coverage Ratio (X)4.874.496.036.534.70
Interest Coverage Ratio (Post Tax) (X)2.762.343.523.782.75
Enterprise Value (Cr.)35828.3326704.5122282.8724254.309489.25
EV / Net Operating Revenue (X)3.102.752.793.671.64
EV / EBITDA (X)16.2519.0513.7114.687.31
MarketCap / Net Operating Revenue (X)2.732.322.353.381.25
Retention Ratios (%)85.3472.8183.130.0072.53
Price / BV (X)5.874.824.345.982.40
Price / Net Operating Revenue (X)2.732.322.353.381.25
EarningsYield0.020.010.030.030.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of J K Cements Ltd as of November 21, 2024 is: 4,804.33

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, J K Cements Ltd is Undervalued by 21.57% compared to the current share price 3,952.00

Intrinsic Value of J K Cements Ltd as of November 21, 2024 is: 4,997.31

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, J K Cements Ltd is Undervalued by 26.45% compared to the current share price 3,952.00

Last 5 Year EPS CAGR: 4.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 8.58, which is a positive sign.
  2. The company has shown consistent growth in sales (5.62 cr) and profit (241.31 cr) over the years.
  1. The stock has a low average ROCE of 13.17%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 106.08, which may not be favorable.
  3. The company has higher borrowings (3,674.38) compared to reserves (2,979.62), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in J K Cements Ltd:
    1. Net Profit Margin: 6.83%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.31% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.73% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.76
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.95
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 42.1 (Industry average Stock P/E: 34.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.97
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

JK Cement Ltd. is a Public Limited Listed company incorporated on 24/11/1994 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L17229UP1994PLC017199 and registration number is 017199. Currently Company is involved in the business activities of Manufacture of cement, lime and plaster. Company’s Total Operating Revenue is Rs. 7678.58 Cr. and Equity Capital is Rs. 77.27 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
CementKamla Tower, Kanpur Uttar Pradesh 208001shambhu.singh@jkcement.com
http://www.jkcement.com
Management
NamePosition Held
Mrs. Sushila Devi SinghaniaChairperson
Dr. Nidhipati SinghaniaVice Chairman
Dr. Raghavpat SinghaniaManaging Director
Mr. Madhavkrishna SinghaniaDy.Managing Director & CEO
Mr. Ajay Kumar SaraogiDy.Managing Director & CFO
Mr. Mudit AggarwalDirector
Mr. Paul Heinz HugentoblerDirector
Mr. Saurabh ChandraDirector
Mrs. Deepa Gopalan WadhwaDirector
Mr. Ashok Kumar SharmaDirector
Mr. Ashok SinhaDirector
Mr. Sudhir JalanDirector
Ms. Praveen MahajanDirector
Mr. Rakesh SethiDirector

FAQ

What is the latest intrinsic value of J K Cements Ltd?

The latest intrinsic value of J K Cements Ltd as on 21 November 2024 is ₹4804.33, which is 21.57% higher than the current market price of ₹3,952.00.

What is the Market Cap of J K Cements Ltd?

The Market Cap of J K Cements Ltd is 30,540 Cr..

What is the current Stock Price of J K Cements Ltd as on 21 November 2024?

The current stock price of J K Cements Ltd as on 21 November 2024 is ₹3,952.

What is the High / Low of J K Cements Ltd stocks in FY 2024?

In FY 2024, the High / Low of J K Cements Ltd stocks is 4,896/3,474.

What is the Stock P/E of J K Cements Ltd?

The Stock P/E of J K Cements Ltd is 42.1.

What is the Book Value of J K Cements Ltd?

The Book Value of J K Cements Ltd is 715.

What is the Dividend Yield of J K Cements Ltd?

The Dividend Yield of J K Cements Ltd is 0.38 %.

What is the ROCE of J K Cements Ltd?

The ROCE of J K Cements Ltd is 15.8 %.

What is the ROE of J K Cements Ltd?

The ROE of J K Cements Ltd is 15.9 %.

What is the Face Value of J K Cements Ltd?

The Face Value of J K Cements Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in J K Cements Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE