Buy JK Lakshmi Cement; target of Rs 881: Prabhudas Lilladher

Prabhudas Lilladher is bullish on JK Lakshmi Cement has recommended buy rating on the stock with a target price of Rs 881 in its research report dated February 04, 2026.

Broker Research

February 05, 2026 / 13:20 IST

Buy

Prabhudas Lilladher's research report on JK Lakshmi Cement

JK Lakshmi (JKLC) reported a weak operating performance in Q3FY26 on sharp 10% QoQ cut in average realizations impacted by higher volumes in nontrade segment post commissioning of 1.5mtpa Surat GU in Sep’25, at a time when prices were on correction mode amid GST rationalization. Volumes grew by 8% YoY, on higher institutional sales in Gujarat and Mumbai. P&F costs declined on lower power costs, while freight costs fell due to reduced lead distance; which couldn’t negate NSR fall, resulting EBITDA/t of Rs625 (PLe Rs816). Mgmt. indicated that non-trade prices have increased by Rs10-15/bag across regions post Dec’25, with trade prices expected to follow on strong demand momentum and fuel cost inflation. JKLC remains focused on growth via capacity additions while it has demonstrated good progress on the cost front through a higher green power share and operational efficiencies, which should support margins over the long term.

Outlook

We cut our estimates for FY27/28E by 2%/1% on lower pricing assumption and expect JKLC to deliver EBITDA/volume CAGR of 21%/10% over FY25-28E. The stock is trading at EV of 9x/8.7x FY27E/28E EBITDA. Maintain ‘BUY’ with revised TP of Rs881 (earlier Rs891) valuing at 10x EV of Mar’28E EBITDA.

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