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HDFC Securities Institutional Equities
Domestic brokerage firm HDFC Securities Institutional Equities has maintained Buy rating on JK Cement Ltd., with an unchanged target price of Rs 5,950/share (15x FY28E consolidated Ebitda).
The brokerage noted that despite demand and cost volatility in Q1 FY27, JK Cement remains upbeat following its recent interaction with management
The company remained confident of delivering double-digit volume growth during the quarter. Further, it guided its blended margin to be only marginally impacted QoQ in Q1 FY27E, benefitting from low-cost fuel inventory and cement price hike taken so far, which should offset op-lev loss and higher packaging and freight costs.
Management expects cement demand to remain robust, driven by upcoming state elections in early 2027 in UP and general elections in 2029, which should more than offset for multiple cement expansions across regions. Its expansions in the northern region (both grey cement and putty) are on track.
The brokerage continues to like JK Cement for its robust volume and margin performance and estimates the company to deliver 12/21% volume/Ebitda CAGRs during FY26-28E, which should help sustain its healthy return ratios.
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