Shares of this mid-cap cement stock gained more than 8 percent in Monday’s trading session after the company reported financial results for Q2FY23-24, i.e., for the quarter ended September 2023.
With a market capitalization of Rs 26,223.74 crores, the stocks of JK Cement Limited opened their trading hour on Monday at Rs 3,235.05 and currently trades at Rs 3,394.60, gaining approximately 8.40 percent compared to the previous closing levels of Rs 3,131.95 apiece.
Such bullish sentiments around the company’s stocks are witnessed after the company, in a regulatory filing with the Bombay Stock Exchange (BSE), announced financial results for the quarter ended September 2023.
The company, on a QoQ basis, reported a marginal dip in operating revenues from Rs 2,763 crores during Q1FY23-24 to Rs 2,753 crores during Q2FY23-24. On a contrasting note, the net profits of the company rose from Rs 113 crores to Rs 178 crores keeping the timeframe the same.
In addition, the company, on a YoY basis, reported positive movements as far as the abovementioned metrics are concerned.
The operating revenues, on one hand, increased from Rs 2,234 crores during Q2FY22-23 to Rs 2,753 crores during Q2FY23-24, and, the net profits, on the other hand, shifted up from Rs 111 crores to Rs 178 crores exhibiting a jump of approximately 60 percent.
Historically, the company, due to increased cost pressure, reported a dip in the profitability ratios such as the return on equity (RoE) as well as return on capital employed (RoCE). The former reduced from 16.85 percent during FY21-22 to 9.30 percent during FY22-23, and, the latter, during the same period, dipped from 16.75 percent to 10.56 percent.
As per the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 45.8 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 14.38 percent in the company.
JK Cement Limited is a company based in India that manufactures cement and cement-related products primarily consisting of white as well as grey cement. Generating a majority of its revenue from India, the company has only one reportable segment which is ‘cement’.
Written by Amit Madnani
