JK Lakshmi Cement gets Q3 booster

DALAL STREET SPIKES

Mid-cap cement maker JK Lakshmi Cement surged over 7 per cent to close at Rs 180.6 on volumes of over 11.6 lakh shares powered primarily by a good financial performance in the December 2006 quarter.

The company's revenues surged 50 per cent year on year to Rs 228.64 crore while net profits nearly quadrupled about Rs 55 crore. The company is a major player in north India and derives nearly 70 per cent of its sales from Rajasthan and Gujarat.

Like many of its peers, the company has planned a significant capacity increase of about one million tonne by March 2008. The stock trades at P/E of 6.4 times annualised FY07 earnings, which appears quite attractive and is at a significant discount.