JK Cement share price rise 56% in a year: 3 key reasons why analysts expect more than 12% upside for the stock
JK Cement share price that has risen 56 % in last one year and is trading near 52-week highs seen recently. Strong cement demand in the country has been driving investor confidence on cement stocks. The expansions being carried out by JK Cement have further helped improve sentiments.
Analysts remain positive and see more gains ahead. Those at Motilal Oswal Financial Services have given target price of ₹5050 indicating upside of more than 12% Analysts at Motilal Oswal Financial Services remain positive on JK Cement's execution capabilities as the commissioning of its new plant at Panna, Madhya Pradesh achieved a 90% capacity utilization with one year of commissioning, helping the company deliver higher-than industry volume growth. Also Read- Zomato Stock Check: Up over 200% in last 1 year, positive for 11 straight months; should you buy? Analysts at Axis Securities also had attributed Q3 volume growth to the recent expansion of 4 mtpa (million tonne per annum) grey cement capacity in the demand-accretive central India region.
JK Cement has further plans to expand its capacities at Panna. JK Cement announced announced a clinker capacity expansion of (10,000 tonne per day or 3mtpa) at Panna and associated grinding units in the Central region and Bihar (cumulative capacity of about 6 million tonne per annum). Motilal Oswal said, JK Cement has potential to reach 50mtpa plus capacity in the long run, as it follows a disciplined expansion approach.
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