InvestorQ : Why has the price of JK Cement fallen so sharply in recent weeks?
Mahima Roy made post

Why has the price of JK Cement fallen so sharply in recent weeks?

Answer
image
2 months ago
Follow

On the one hand, cement companies are struggling due to higher power and freight costs. On the other h and, JK Cement announced its entry into the paints business which has not gone down well with the markets. The markets gave a thumbs down to the stock considering the OPM pressures that paints companies are currently facing.

JK Cement plans to invest Rs.600 crore in the next 5 years and targets revenues from paints to the tune of Rs.850 crore. Investors were not too happy with this capital allocation as the paint segment is hit by cost inflation and also is very competitive. Already cement names like Grasim have committed to invest Rs.5,000 crore in paints and there could be overcrowding.

3 Views