Reduce JK Cement; target of Rs 2755: HDFC Securities

HDFC Securities' research report on JK Cement

In Q4FY23, JKCE reported 16% YoY consolidated volume growth led by the fast ramp-up of Panna IU in the central region. Consolidated unitary EBITDA recovered ~INR 150/MT QoQ on fuel cost reduction and op-lev gains. Fuel cost is expected to further cool off in FY24E, driving margin recovery. The upcoming expansions in UP and MP will increase grey cement capacity to 24mn MT in FY25E.

Outlook

We maintain our REDUCE rating on JK Cement (JKCE), with a revised TP of INR 2,755 (11x Mar-25E consolidated EBITDA).

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