Buy JK Cement; target of Rs 6342: Anand Rathi

Anand Rathi's research report on JK Cement

Capacity ramp-up, demand upswing, stable prices in its key operating regions (North/Central) and various cost optimisation measures aided JK Cement’s overall performance. The ongoing expansion would increase capacity to 30m tonnes by FY26; the long-term target is 50m tonnes by 2030. The continuous cost efficiency focus with higher renewable-energy share (60% by FY26) would aid in Rs150-200/ton cost savings (Rs40/tonne by FY25).

Outlook

We retain our Buy rating, with a higher 12-mth TP of Rs6,342 (Rs5,841 earlier), 17.5x FY27e EV/EBITDA.

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