Buy JK Cement; target of Rs 7638: Anand Rathi

Anand Rathi's research report on JK Cement

With 25.26m tonnes cement capacity now, JK Cement’s announced expansion would take it to 32m tonnes by FY26. Its long-term target of 50m tonnes by 2030 remains. The continuous cost efficiency focus with higher share of renewable energy (60% by FY26) would aid in Rs150- 200/tonne cost savings in coming years. Greater profitability with cost optimisation and volume growth would keep net debt in check.

Outlook

We retain our Buy rating, with a higher 12-mth TP of Rs7,678 (Rs6,342 earlier), 18.5x Sep’27e EV/EBITDA.

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