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J K Cements Ltd

NSE: JKCEMENT BSE: 532644

5599

(-3.66%)

Sat, 14 Feb 2026, 09:58 pm

J K Cements Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.1x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
  • J.K. Cement's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • J.K. Cement's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • J.K. Cement's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Basic Materials industry average.
  • J.K. Cement's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for J.K. Cement is expected to increase but not above the 50% threshold in 2 years time.
  • J.K. Cement's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
  • J.K. Cement's earnings growth is positive but not above the India market average.
  • J.K. Cement's earnings are expected to increase but not above the low risk growth rate next year.
  • J.K. Cement's net income is expected to increase but not above the 50% threshold in 2 years time.
  • J.K. Cement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in J.K. Cement's performance (ROE) is expected over the next 3 years.
  • J.K. Cement's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • J.K. Cement's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • J.K. Cement is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • J.K. Cement is profitable, therefore cash runway is not a concern.
  • J.K. Cement is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (34.1%, greater than 20% of total debt).
  • The level of debt compared to net worth has been reduced over the past 5 years (187.8% vs 105.4% today).
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
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Cons

  • Debt is not covered by short term assets, assets are 0.8x debt.
  • J.K. Cement's long term commitments exceed its cash and other short term assets.
  • J.K. Cement's level of debt (105.4%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the J.K. Cement board of directors is about average.
  • Yadupati's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Yadupati's remuneration is higher than average for companies of similar size in India.
  • The average tenure for the J.K. Cement management team is less than 2 years, this suggests a new team.

past

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Pros

  • J.K. Cement's 1-year earnings growth exceeds its 5-year average (75% vs 26%)
  • J.K. Cement has delivered over 20% year on year earnings growth in the past 5 years.
  • J.K. Cement used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
  • J.K. Cement has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
  • J.K. Cement's earnings growth has exceeded the IN Basic Materials industry average in the past year (75% vs 17%).
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Cons

  • J.K. Cement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

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Pros

  • JKCEMENT outperformed the Basic Materials industry which returned -15.5% over the past year.
  • JKCEMENT outperformed the Market in India which returned -14.5% over the past year.
  • NSEI:JKCEMENT is up 7.1% along with the India market (8%) over the past month.
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Cons

  • J.K. Cement's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • J.K. Cement's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • J.K. Cement is overvalued based on assets compared to the IN Basic Materials industry average.
  • J.K. Cement is poor value based on expected growth next year.
  • J.K. Cement is overvalued based on earnings compared to the IN Basic Materials industry average.
  • J.K. Cement is overvalued based on earnings compared to the India market.
  • NSEI:JKCEMENT is up 7.1% underperforming the Basic Materials industry which returned 9.2% over the past month.

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