India is the world’s 2nd largest cement market, both in production and consumption.
JK Cement is the 2nd largest manufacturer of White Cement and Wall putty in India with a market cap of around ₹20,680.95 crores.
The stock has recorded double-digit growth of 33.5% as of October 24, from its 52 Week low in June
Axis Securities highlights three factors why JK Cement is the pick of the week
High Growth in White Cement Business
It is expected that the white cement business will grow at a CAGR of 8% over FY21-24E.
Capacity expansion to drive higher sector revenue growth
Thecompany is expanding its Grey Cement capacity by 4 mtpa and plans on setting up units in MP and UP.
Industry growth of 14% CAGR is expected over FY21-24E which is higher than the estimated 8% CAGR for the same period.
Govt Initiatives to drive Cement consumption
With the general election of 2024 fast approaching, rising construction activities will fuel the Cement demand.
Being the second-largest manufacturer of White Cement in India, JK Cement will benefit from this cement demand.
Axis Securities recommends buying JK Cement stocks for a target price of ₹2,920