JK Cement builds up

JK Cement is doing exceedingly well, both on the bourses as well as financially. In fact it is the financial performance which has spiked it up on the bourses. The stock which had closed on Friday at Rs.251, opened today at Rs.268, went on to hit a new 52-week high at Rs.295.95 and presently remains up over 15%.

The stock is doing well on the back of its good performance for Q4 and Fy14 performance. For Q4Fy14, net sales rose 7% (YoY) at Rs.827 crore and then a 67% jump in other operating income and other income jumping up from Rs.8 crore to Rs.14 crore, while keeping a tight leash on operating expenses, the company ended the quarter with a net profit at Rs.76 crore, up 36%.

It ended FY14 with a 4% decline in consolidated net sales at Rs.2781 crore but a 63% drop in tax outgo helped the company end the fiscal with a smart 234% jump in net profit at Rs.771 crore v/s Rs.231 crore in FY13. EPS for FY14 is at Rs.11 and this discounts the current price by around 26 times.