Street View: India's JK Cement to weather margin pressure as demand stays robust
BUZZ-Street View: India's JK Cement to weather margin pressure as demand stays robust ** Shares of India's JK Cement JKCE.NS posted a 12.5% year-on-year decline in Q1 profit to 2.91 billion rupees ($30.17 million), while revenue rose 21.2% y/y
** Shares rise 2.36% to 5518.20 rupees
STRONG DEMAND OUTLOOK
** Citi ("buy", raises PT to 6,600 rupees from 6,250 rupees) says strong volume growth and improved realizations should help margins recover as maintenance costs normalize
** Investec ("buy", PT 5,945 rupees) says June-quarter EBITDA fell as maintenance costs weighed on margins, but expects capacity additions, including the 7 MTPA expansion by H1FY28, to support future growth
** Jefferies ("buy", PT 6,705 rupees) says robust demand and easing fuel costs should support earnings over the next few quarters, with the company's expansion plans underpinning long-term growth
** Emkay Global ("buy", PT 6,000 rupees) views any near-term weakness in the stock as a buying opportunity, citing benign fuel costs and a strong volume outlook
($1 = 96.4550 Indian rupees)
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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