In Friday’s trading session, shares of one of the leading cement stocks, known for its specialized offerings including high-strength, environment-friendly cement variants, in focus after receiving exchange approval for the amalgamation of its three subsidiaries.
Price action
With a market capitalization of Rs. 9,822.51 crores on Friday, the shares of JK Lakshmi Cements Limited rose by 0.5 percent making a high of Rs. 840.45 per share compared to its previous closing price of Rs. 834.95 per share.
What Happened
JK Lakshmi Cements Limited, specialized in manufacturing a wide range of high-quality cement products, caters to various segments of the construction industry.
JK Lakshmi Cements Limited has received approval from leading bourses, NSE and BSE, for the amalgamation of its three subsidiaries: Udaipur Cement Works Ltd, Hansdeep Industries and Trading Ltd, and Hidrive Developers and Industries Ltd.
The company has approved the amalgamation scheme, which will simplify the group structure and create a more commercially meaningful entity, focused on the cement and cement products business.
This strategic move is expected to enhance operational efficiency, streamline management, and strengthen the company’s position in the market by focusing all efforts under one unified corporate structure
About the company
JK Lakshmi Cement Ltd, a flagship company of the JK Group, is one of India’s leading cement manufacturers. Established in 1982, the company has carved a niche for itself in the Indian construction sector, known for its commitment to delivering premium-quality cement and ready-mix concrete (RMC) solutions.
The company also focuses on providing specialized products for specific applications, such as low-heat cement for mass concrete structures and sulphate-resistant cement for construction in aggressive environments. With a strong emphasis on innovation and quality, JK Lakshmi Cement meets the diverse needs of residential, commercial, and industrial construction projects across India.
Shareholding pattern
The shareholding pattern of JK Lakshmi Cement Ltd is as follows: Promoters hold 46.34 percent of the total shares, while Foreign Institutional Investors (FIIs) own 11.53 percent, Domestic Institutional Investors (DIIs) hold 24.96 percent, and the remaining 17.18 percent is held by the public.
Financials
The company’s revenue fell by 22 percent from Rs 1,588.51 crore to Rs 1,242.67 crore in Q2FY24-25. Meanwhile, Net profit fell from a profit of Rs 92.67 crores to a loss of Rs 13.99 crore during the same period.
Key Financial ratios
JK Lakshmi Cement Ltd, has an Return on Equity (RoE) of 10.98 percent and a Return on Capital Employed (RoCE) of 12.55 percent. Furthermore, the company’s debt-to-equity ratio is 0.7
Written by Sridhar J
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