INTRODUCTION

J.K. Cement Limited is engaged in the manufacturing and selling of Cement and Cement related
products with over 4 decades of experience in cement manufacturing. It is an affiliate of the multi-
disciplinary industrial conglomerate JK Organization.
The Company produces grey cement, white cement and water proof. The Company
manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of
Rajasthan in Northern India. Grey cement produced by it consists of ordinary portland cement
(OPC) and portland pozzolana cement (PPC). OPC has three grades, which consist of 53-grade,
43-grade and 33-grade. Its cement products are marketed under the brand names: J.K. Cement
and Sarvashaktiman for OPC products; J.K. Super for PPC products, and J.K. White and Camel
for white cement products. The Company has grey cement plants, white cement plant, thermal
power plants and waste heat recovery power plant.
During the fiscal year ended March 31, 2012, it produced 3.77 lacs tons of white cement, 5.32
million tons of grey cement. Company has delivered good profit growth of 65.10% CAGR over
last 5 years. Company has been maintaining a healthy dividend payout of 18.89%.

MARKET PRICE ANALYSIS

The current market price of JK Cements Ltd. Is 3437 RS.

Trending news about the company’s market price

 OCTOBER 2021: JK Cement Ltd. signed a long-term strategic Memorandum of

Understanding (MoU) with Punjab Renewable Energy Systems Private Limited (PRESPL).
The MoU is part of JK Cement’s attempts to decarbonize its operations and significantly
scale-up the use of biomass-based and alternate fuels as replacements to fossil fuels,
like coal, in its manufacturing operations.
 AUGUST 2021 : JK Cement Ltd has informed BSE that the Board of Directors of the
Company at its meeting held on June 12, 2021, inter alia, has recommended Dividend at
the rate of Rs.15 per equity share (i.e. 150%) of Rs. 10 each (fully paid up) for the
Financial year 2020-21 for the approval by the Shareholders at the 27th Annual General
Meeting of the Company.
 JULY 2021 : In July 2021, Vedanta announced that its aluminium unit invited bids for
alliances from cement manufacturing companies such as JK Cement, ACC and UltraTech
Cement to utilise fly ash, a by-product, to produce low-carbon cement.
 FEB – 2021 : As per the Union Budget 2021-22, the government approved an outlay of
Rs. 1,18,101 crore (US$ 16.22 billion) for the Ministry of Road Transport and Highways,
and this step is likely to boost the demand for cement.
 MAR – 2020 : JK Cement Ltd has informed BSE that the Board of Directors of the
Company at its meeting held on FEB 28, 2020, has recommended Interim Dividend at
the rate of Rs.7.5 per equity share (i.e. 75%) of Rs. 10 each (fully paid up) for the
Financial year 2019-20 for the approval by the Shareholders.
 JUL – 2019 : JK Cement Ltd has informed BSE that the Board of Directors of the
Company at its meeting held on MAY 20, 2019, has recommended Interim Dividend at
the rate of Rs.10 per equity share (i.e. 100%) of Rs. 10 each (fully paid up) for the
Financial year 2019-20 for the approval by the Shareholders.

FINANCIAL RATIO ANALYSIS

Liquidity Ratios Mar-21 Mar-20 Mar-19
Current Ratio (X) 1.72 1.31 1.32
Quick Ratio (X) 1.33 0.92 0.93

Liquidity ratios are the ratios which show how easily a company can pay its debts.
Typically, Current ratio is a financial metric that enables investors and stockholders to assess
a firm’s ability to pay off its immediate liabilities with its current assets.
As from above data, over a period of 3 years, Current ratio somewhat in increasing from 1.32 to
1.72 which indicates that short term liquidity and solvency has improved that is company can
easily meet its short term liabilities or debts and the funds yielded by current assets are just
sufficient to pay the amounts due to various creditors and there will be nothing left to meet the
expenses which are being currently incurred.
Quick ratio acts as a company’s indicator for its short-term liquidity position, and it
measures the ability of the business to discharge its short-term obligations with the liquid
assets at its disposal.
When we talk about Quick ratio it also shows the increasing trend from 0.93 to 1.33 which
steadily indicates that company can easily meet its current liabilities in very short term so does
the company's liquidity. More assets can be quickly converted into cash.

Turnover Ratios Mar-21 Mar-20 Mar-19

Asset Turnover
69.01 69.55 71.7
Ratio (%)
Inventory Turnover
9.22 8.71 8.93
Ratio (X)

From above data, over a period of 3 years, A high asset turnover ratio indicates efficient
utilization of fixed assets in generating sales. Higher the asset turnover ratio better the
company’s financial growth.
As we can see the ratio is kept on decreasing slightly per year, this is due to decrease in sales or
increase in fixed assets.
From the year 2019 to 2020 there is an decrease in inventory turnover ratio while there is an
increase in the average holding period indicating the fall in sales and from the year 2020 to
2021 there is an increase in inventory turnover ratio while there is an decrease in the average
holding period indicating the rise in sales.

Margin Ratios Mar-21 Mar-20 Mar-19

Gross Profit Margin
25.71 23.19 17.86
(%)
Operating Margin
21.84 19.27 13.96
(%)
Net Profit Margin
9.52 7.32 6.52
(%)
Gross profit margin refers to the percentage of a company’s revenue that it retains after
accounting for the Cost of Goods Sold or COGS. 

Here we can see that Gross profit margin (%) is kept on increasing from 2019 to 2021 which
indicates it is better as it leaves a higher margin to meet operating expenses and the creation of
reserves. This is either due to higher pricing or low product costs.
The operating profit margin measure the profits generated by the core operations of the
business. 
We can see that Operating Profit Ratio increases from 13.96% to 21.84%. A higher operating
profit margin means that a company has lower fixed cost and a better gross margin or
increasing sales faster than costs, which gives management more flexibility in determining
prices.
Net Profit Ratio measures the relationship between Net Profit and Net Sales. It shows the
percentage of Net Profit earned on Revenue from Operations.

According to data, the net profit ratio is kept on increasing from 6.52% to 9.52%. An increasing net
profit ratio is an advantageous position to survive in the face of rising cost of production and falling
selling prices.