Buy JK Cement; target of Rs 6780: Motilal Oswal

Motilal Oswal is bullish on JK Cement recommended buy rating on the stock with a target price of Rs 6780 in its research report dated February 18, 2026.

Broker Research

February 19, 2026 / 10:43 IST

buy

Motilal Oswal's research report on JK Cement

JK Cement’s (JKCE) stock has underperformed broader indices and other top cement companies in the past few months (over Sep-Feb’26 MTD) on account of margin contraction and higher expected capacity additions in its core markets (North and Central) over the next two years. However, the company remained resilient in terms of robust volume growth, strong execution strategies, market share gains, and timely completion of capacity expansion projects. The company recently completed its 6.0mtpa grey cement capacity expansion in the Central and Bihar markets. We believe North and Central region markets remain structurally attractive, supported by sustained demand from infrastructure and housing segments. We estimate average capacity utilization in the North/Central regions at +80%/+75% in FY27/FY28, despite higher capacity additions. While headline cement capacity expansion announcements remain elevated, execution cadence and timely commissioning are critical in assessing the real extent of oversupply risk.

Outlook

We expect JKCE to report robust volume growth (~13% CAGR over FY26- 28), driven by capacity expansions. We estimate its consolidated revenue/EBITDA/PAT CAGR at 13%/17%/19% over FY26-28, and EBITDA/t at INR1,107/INR1,140 in FY27/FY28 vs. INR1,060 in FY26. We value it at 17x FY28E EV/EBITDA to arrive at our TP of INR6,780. We reiterate our BUY rating on the stock.

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