JK Cement shares jump over 8% after Q2 results beat analysts' estimate; should you buy, sell or hold?

Shares of JK Cement, one of the leading manufacturers of grey cement in India, rose as much as 6 per cent in Monday's morning deals and touched the intra-day high of Rs 3,316.4 apiece. The stock climbed after the company posted its July to September quarter (Q2 FY24) results, which were better than estimates.

At around 9:53 a.m., shares of JK Cement traded 5.45 per cent or Rs 170.75, higher on the BSE at Rs 3,302.7 apiece. The market capitalisation of the company stood at Rs 25,513.8 crore. The stock ended 8.71 per cent or Rs 272.75 at Rs 3,404.7 apiece. 

JK Cement reported a consolidated net profit of Rs 178.5 crore as against the estimate of Rs 137.1 crore. 

The company logged revenue of Rs 2,752.8 crore against the Zee Business analysts' estimate of Rs 2,600. The earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 467 crore as against the analysts' estimate of Rs 416.8 crore for the quarter ending September.

The company's margin, a key to measuring profitability, was recorded at 17 per cent against the estimate of 16 per cent. 

Further, the grey cement business volume increased by 22 per cent year-on-year (YoY) and the white cement business grew by 19 per cent.

Anil Singhvi's view 

Zee Business Managing Editor Anil Singhvi has recommended buying shares of JK Cement on the back of strong margins and operational performance.

He has given various targets of Rs 3,190, Rs 3,225, and Rs 3,240 apiece, with a stop loss of Rs 3,100 apiece. 

Brokerage view

Jefferies has maintained a 'hold' on JK Cement shares with a target of Rs 3,310 apiece.

JK Cement share price: Past performance

In 2023 so far, shares of JK Cement have gained nearly 13 per cent as against the Nifty50's rise of over 6 per cent. 

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