JK Cement rallies 6% as Gujarat unit commences commercial dispatches

Shares of JK Cement hit a record high of Rs 1,680, up 6 per cent on the BSE in intra-day trade on Friday, after the company commenced the commercial dispatches from its Gujarat unit.

“The Company has successfully commissioned 0.7 million tonne per annum (MnTPA) grey cement grinding capacity at J K Cement works, Balasinor, Gujrat, unit of J K Cement and also commenced commercial dispatches today i.e. 8th October, 2020,” JK Cement said in a regulatory filing on Thursday after market hours.

With this the Company has successfully completed its grey cement capacity expansion of 4.2 MnTPA comprising in Rajasthan (2 MnTPA), Uttar Pradesh (1.5 MnTPA) and Gujarat (0.7 MnTPA), it said.

Going ahead, JK Cement plans to increase grey cement capacity through a Greenfield plant at Panna, MP, where it has limestone mines. It will also benefit from cost saving strategies (upgrading Kiln III at Nimbahera and 15MW WHRS at Mangrol plant), analyst at Emkay Global Financial Services said in a recent stock update note.

The brokerage firm's channel checks indicate strong volume growth for JK Cement in Q2FY21, as the company benefits from new capacities.

At 10:01 am, JK Cement was trading 3 per cent higher at Rs 1,638 on the BSE, as compared to 0.04 per cent rise in the S&P BSE Sensex. A combined around 149,000 equity shares were changing hands on the counter on the NSE and BSE.