Shares of JK Lakshmi Cement rallied as much as 7.5 per cent to hit intraday high of Rs 368.80 after the cement manufacturer reported better-than-expected March quarter earnings.
JK Lakshmi Cement had announced its earnings after market hours yesterday. Its net profit rose to Rs 48.38 crore, helped by higher sales and cost-optimisation measures.
The firm had clocked a net profit of Rs 6.05 crore in the year-ago period.
Net sales of the company grew 27 per cent to Rs 735 crore from Rs 578 crore during the same quarter last financial year.
According to brokerage Prabhudas Lilladher, "JK Lakshmi Cement earnings were way ahead of our expectation. The beat was driven by sharp fall in costs, more than making up for lower realisations."
Prabhudas Lilladher has a 'buy' rating on the stock. "Backed by efficient operations, play on large capacity base and attractive valuations, we reiterate 'buy' with revised target price of Rs 415," the brokerage said.
Shares of JK Lakshmi Cement ended 3.84 per cent higher at Rs 356.60.