Hold JK Cement target of Rs 2800: Emkay Global Financial

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26 Aug, 2025 12:21

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Emkay Global Financial's research report on JK Cement

JK Cement’s (JKCE’s) Q3FY23 standalone EBITDA declined 29% YoY/11% QoQ to Rs2.6bn, standing 24-28% below consensus and our estimates owing to higher-thanexpected costs. Blended EBITDA/ton fell 40% YoY/18% QoQ to Rs669 (Emkay Est: Rs930). JKCE targets increasing its grinding capacity to 25mt (from ~19mt currently) by H1FY25. This will help the company gain market share over the medium term. Net debt declined by Rs680mn QoQ to Rs28.7bn, as of Dec-22. Factoring-in the Q3 miss and high cost/ton, we cut FY24E-25E EBITDA by 3-5%.

Outlook

Maintain HOLD on the stock with an unchanged Mar24-TP of Rs2,800/share, post the half-yearly roll-over. Our DCF-based TP implies 1-yr forward EV/EBITDA of 11x.

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JK Cement - 09 -02 - 2023 - emkay