Buy JK Cement; target of Rs 7151: ICICI Securities

ICICI Securities is bullish on JK Cement has recommended buy rating on the stock with a target price of Rs 7151 in its research report dated November 07, 2025.

Broker Research

November 10, 2025 / 11:33 IST

Buy

26 Aug, 2025 12:21

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ICICI Securities's research report on JK Cement

JK Cement (JKCE) remains a premium imperative story - being among the few companies with clear visibility to double capacity in next five years. However, the sectoral pangs (of bleak near-term cement price outlook led by underlying GST rate cut transition phase) warrant recalibration. Factoring in muted price hikes, we prune FY26/27E EBITDA by 8%/7%. Further, we also trim our valuation multiple (from 22x to 20x FY27E EV/EBITDA) reckoning a possible race for capacity share in North India (prompted by recent large capex announcement by industry leader UltraTech Cement in the region), where JKCE has >50% capacity exposure. Yet, the multiple continues to be at a premium vs. those we assign for industry majors (of 18x) given JKCE’s sustained industry superior RoE. Overall, we stay positive and retain BUY with a revised TP of INR 7,151 (vs. INR 8,500 earlier).

Outlook

We value JKCE at a rich 20x FY27E EV/EBITDA (vs. 18x assumed for industry leaders UltraTech Cement and Shree Cement) and maintain BUY with a revised TP of INR 7,151 (vs. INR 8,500 earlier).

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