Buy JK Cement; target of Rs 404: AnandRathi

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26 Aug, 2025 12:21

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AnandRathi is bullish on JK Cement and has recommended buy rating on the stock with a target of Rs 404 in its December 12, 2012 research report.
 
“JK Cement, one of the largest cement manufacturers in North India and second largest producer of white cement in India. It is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania in the year 1994. The Company produces 53-grade, 43-grade and 33-grade Ordinary Portland Cement (OPC) grey cement, Portland Pozzolana Cement ('PPC') under grey and white cement. JK Water proof is another product from JK Cements used for flooring, wall application and other specialized applications. The products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K. White and Camel for white cement products.”
 
“The company has been enjoying good volume growth compared to its peers and price increase is also helping on the realizations front. In Q2FY13 revenue rose 39% YoY, led by 18%YoY spike in volumes and 17% increase in realizations. Grey cement rose 18% YoY on a spike in utilisation in Karnataka unit from 45% to 65%. White cement/wall putty volumes during 2QFY13 grew 25%/41% yoy.” 
 
“On valuations front we expect 16% and 17.5% growth in the top line for FY13 and FY14 which gives 44% and 28% increase in the bottom line respectively in the same period. At our target price of 404 the stock would trade at 5.8x FY14E EV/EBITDA and at a PE of 9x. With expansion plans on track and added advantage of white cement growth will be beneficial for the company’s growth potential going forward,” says AnandRathi research report.

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