J K Cements (JKCEMENT)

FairStock Score: 57/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach J K Cements as a cement business, which usually means cyclicality, heavy capital, and regional moats. The given numbers show sales momentum: latest quarter sales were ₹3,463 Cr, sales growth 21.87%, and five-year revenue CAGR 15.41%. But profit growth is -13.29%, so growth is not reaching the bottom line. The balance sheet is not fragile: Debt/Equity 0.88, Altman Z-Score 3.22, Piotroski F-Score 8/9, ROE 16.75%, ROCE 13.99%. That suggests some operating quality and accounting momentum. Promoter holding of 45.66% is meaningful skin in the game. However, as a Buffett-style owner, I ask what I pay. Price is ₹5,306.50, market cap ₹41,002 Cr, P/E 43.29, P/B 5.83, and dividend yield only 0.38%. Graham Number is ₹1,529.56, implying a margin of safety of -269.78%; DCF intrinsic value is ₹105.77. PEG is 4.06 and EV/EBITDA is 164.94. Free cash flow is just ₹49 Cr. These are not bargain signals. The moat may come from cement logistics and brand, but the numbers show a capital-hungry cyclical whose earnings are under pressure. Cement demand can be robust, yet pricing power and cost inflation decide owners’ returns. I would call it a quality-ish cyclical, not a value purchase. At this price, the market already assumes a lot. I would wait for profit recovery, stronger FCF, and a more sensible valuation before considering it. FairStock Score 57/100 STEADY is fair, not exciting.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer