JK Cement shares rose over 3% in early trade today after the company reported impressive Q4 results for FY24. As of 9:15 AM, the shares were trading 3.75% higher at Rs 5,300.00.
The company’s net profit jumped 77% year-on-year to ₹417.3 crore, up from ₹236 crore in the same quarter last year, signaling strong operational performance and cost efficiency.
Revenue for the quarter ending March 2024 rose 13.7% to ₹3,343 crore, compared to ₹2,939 crore in the previous fiscal. The company also reported a robust increase in EBITDA, which climbed 34.5% to ₹736.6 crore from ₹547.5 crore year-on-year. This growth highlights improved pricing and demand conditions in the cement sector.
Importantly, JK Cement’s EBITDA margin expanded significantly to 22.03% in Q4 FY24, compared to 18.63% in Q4 FY23.
In the meantime, Jefferies has maintained a Buy rating on JK Cement, setting a target price of ₹5,520, suggesting a potential upside from the current market price of ₹5,107. The bullish outlook follows a strong Q4 performance, driven by higher volumes and improved realisations.
JK Cement’s Q4 EBITDA exceeded expectations, supported by a ₹225 per tonne QoQ rise in unit EBITDA. Despite a 1% YoY decline in FY25 EBITDA, Jefferies highlighted it as one of the best among cement sector peers.
The brokerage remains optimistic about the company’s future, with its 6 mtpa expansion plan on track for completion by December 2025.
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