CMP: 121

J.K. Lakshmi Cement Ltd. manufactures cement, which it sells under the brand name JK Lakshmi.

JK Lakshmi Cement is a decent bet in mid-cap space trading at a P/E of little over 10. Good dividend yields of less than 2% in the last 12 months. It runs at a debt of 914 Crores with 90 Crores cash in hand. Debt to Profits ratio is currently high at nearly 8 years and hence trading at cheaper valuations. Revenues have risen from 1107 Crores to 1718 Crores in the last 5 years. Profits have dipped from 223 Crores to 109 Crores in the last 5 years on falling profit margins. NPM has fallen from 20% to 6% over the last 5 years. Last quarter margins rose back to 10% and the stock looks to be on a momentum from the short term perspective. Buy and exit when Nifty valuations peak.