JK Cement's Strong Show To Continue, Says HDFC Securities Maintaining 'Add' — Check New Target Price 

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HDFC Securities Institutional Equities

We maintain Add on JK Cement Ltd., with a revised target price of Rs 6,535/share (15x Sep’27E consolidated Ebitda). The company remains on a solid footing.

As per our recent interaction with the management, cement prices have broadly held on QoQ despite heavy monsoon and JK Cement is also expected to deliver high-single-digit grey cement volume growth in Q2 FY26.

It also maintained its ~12% YoY grey cement volume growth guidance for FY26. It is ramping up green power share (already second best after Shree Cement). Additionally, its expansions are on track and JK Cement’s grey cement capacity will increase to 32 million metric tonne by the end of FY26.

It is also well on track to achieve its 50 mmt target by 2030, without straining its balance sheet.

We estimate JK Cement will deliver consolidated revenue/Ebitda/APAT CAGR of 12/25/30% during FY25-28E, riding on strong 11% volume CAGR (expansion-led) and blended unit Ebitda expansion of ~Rs 421/mt (healthy pricing, cost controls, UAE and paint operations turnaround).

Subsequently, JK Cement’s return ratio should remain industry-best, also supporting its premium valuations.

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