JK Cement Shares Upgraded To 'Buy' By Nirmal Bang Post Q2 Results; Sees 25% Upside — Check Target Price

JK Cement reported volume of 5 million tonne with realization/tonne at Rs 6,026 and Ebitda/tonne at Rs 891, registering a YoY growth of 14.6%, 2.9%, and 37%, respectively. While the volume and realization/tonne exceeded brokerage's estimate of 4.7 mt and Rs 5,981/tonne, Ebitda/tonne came in below expectations..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.JK Cement Ltd. is expected to deliver robust earnings growth over the medium term with revenue, Ebitda, and PAT projected to clock a CAGR of 17%, 26%, and 44%, respectively, during FY25-FY27E. Ebitda/tonne is estimated to improve from Rs 1,106 in FY26E to Rs 1,292 in FY27E, driven by multiple cost optimization initiatives. The company is actively working to improve cost efficiency through increased use of green power and a 10% improvement in the thermal substitution rate, along with a 15 km reduction in lead distance. These initiatives are expected to result in cost savings of Rs 150-200/tonne over the next two years.Net debt-to-equity is projected to improve from 0.65x in FY26E to 0.56x in FY27E, indicating strengthening balance sheet health. Return ratios are also set to improve with RoE estimated to rise to ~19.5% and RoCE (post-tax) to ~16.6% by FY27E, up from ~15% and ~14%, respectively, in FY25—reflecting superior operating leverage and better capital efficiency.Given its expanding scale, strong execution capabilities, and ongoing cost rationalization measures, we maintain the target valuation multiple at 15.4x Sep-27E EV/Ebitda, slightly below its five-year historical average of 16x. This results in a target price of Rs 7,238. The stock has corrected ~23% in the last 3 months leading to an upside of 25%, hence, we upgrade the stock to a Buy..Click on the attachment to read the full report:.'Reduce' Bharti Airtel Shares Maintains Dolat Capital Despite Steady Q2 Results— Check New Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JK Cement Shares Upgraded To 'Buy' By Nirmal Bang Post Q2 Results; Sees 25% Upside — Check Target Price

JK Cement has corrected ~23% in the last three months leading to an upside of 25%, hence, Nirmal Bang upgrades the stock to a Buy.

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