• Topline grew 7.5%YoY led by 1%/6% volumes/realisation growth. JKLC's 3Q EBITDA slightly higher at INR1.5Bn.
• Management indicated that the demand trend has started to look positive in 4Q along with improvement in prices improvement by INR10-15/bag till now.
• Company may announce (likely by 4QFY20 end) new expansion of Clinker and grinding capacity by 1.5-2mnT and 2.5mnT respectively in North market which should take 2 years to commence operations.
• Post 3Q, EBITDA estimates looks upward by 11%/8%/6% in FY20/FY21/FY22 led by benefits of better realization trends. Higher capex for FY21/FY22 in relation new WHR project and expected spend related to new capacity addition. The stock assigning 8x FY22 EV/EBITDA.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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