Why does geogit have a ‘cell’ call on this mid-cap cement stock? , Stock market news

Brokerage House Georgit Financial Services has released ‘SAIL’ call JK Cement With the target value of 4,100, estimating 9 percent negative capacity of 9 percent from its previous bandh 4,516.55.

JK Cement Limited, a prominent player in India’s cement industry, continues to expand his domestic and international footprint. 24.34 million tonnes per year (MTPA) and with a white and a gray cement production capacity Cement The capacity of 3.05 MTPA, the company operates in 19 states in India and exports 32 countries.

While the possibilities of long-term development persist, geogit has highlighted that close term headwinds such as pricing pressure and rising cost performance can affect.

Against this background, JioG suggested selling stock On 4,500 4,600 per share for target price 4,100 and maintaining stop losses 4,920.

Stock price

Cement stock 7.5 percent has jumped in the last one year. In addition, after an increase of more than 5 percent in January 2025, there has been a decline of more than 4.5 percent in February so far.

From its previous bandh 4516.55, Stock is more than 9 percent away from its peak 4,985, hit earlier this month. Meanwhile, it is more than 24 percent advanced from its 52-week level. 3,639.15, recorded in June 2024.

fundamental analysis

Jiyojat said that the financial performance of JK Cement in the December quarter (Q3Fy25) Remained silent. The company’s revenue was standing 2,930 crore, unchanged extensively from last year. However, Ebitda recorded a decline of YOY from year to year 492 crores, with Ebitda margin, is contracted from 21.3 percent to 16.8 percent in Q3Fy24. Consolidated net profit also took a hit, which fell 33.2 percent yoy 190 crores, mainly due to the cost of employee and freight.

Despite these challenges, Jiojit highlighted the company’s recent strategic acquisitions, where the board by the Board SAIFCO Cements Private Ltd. Approved the purchase of 60 percent stake in. 174 crores. The move is expected to strengthen the regional appearance of JK Cement.

Given further, Geoget cited the estimates of Bloomberg unanimous, revenue, EBITDA, and PAT growth more than 6.5 percent, 10 percent and 14.2 percent, respectively on a mixed annual growth rate (CAGR). The firm hopes that the government -led infrastructure and the demand to be supported by housing projects, which can also help promote feeling.

However, Jiojit reported that JK Cement faces close-term concerns, including pricing competition and increasing loans due to increasing capital expenditure. From an evaluation perspective, the stock is currently trading at a one -year forward EV/Ebitda of 16.3x, which is above its five -year average of 13.7x.

Geogit noticed that JK Cement’s stock violated a major support level, especially the growing trendline connecting the climb of November 2024 and January 2024. In addition, the stock slipped below its 21-day moving averages (DMA) and 50-day moving average (50-DMA), indicating a potentially weak trend.

A recession candlestick pattern was observed on the weekly chart, which had a price speed deviation, which Jioji believes that a trend may be an early indication of reversal. In addition, the relative power index (RSI) is declining, currently deployed at 42, indicating increasing sales pressure.

Additionally, Geogit reported that a negative crossover on the average convergence deviation (MACD) indicator on the daily chart further confirms the feeling of recession.

Disclaimer: The views and recommendations made above are of individual analysts or broking companies, not Mint. We recommend investors to investigate with certified experts before taking any investment decisions.