Jefferies has reaffirmed its buy rating on JK Cement, raising the target price to ₹5,925 from its earlier estimate. The new target suggests a moderate upside from the current market price of ₹5,241.00, supported by a robust Q4 performance and promising growth trajectory.
The company reported a solid 35% year-on-year jump in EBITDA for the fourth quarter, with volume growth of 15% YoY and EBITDA per tonne increasing 17–22% on both YoY and QoQ basis. The results mark another consistent beat for the cement major.
Management has guided for 10% volume growth in FY26 and expects cost savings of ₹150–₹200 per tonne over FY24 levels. Jefferies highlighted these as key tailwinds for margin stability.
The company is progressing well toward achieving its 30 MTPA capacity by the end of FY26 (up from 24 MTPA currently), with an ambitious roadmap to scale to 50 MTPA in the medium term, ensuring supply-side readiness for future demand.
Given JK Cement’s consistent outperformance relative to peers of similar scale, Jefferies believes premium valuations could persist, especially with execution on expansion and profitability targets remaining on track.
Disclaimer: This article is for informational purposes only and is based solely on brokerage reports and publicly available data. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to consult a certified financial advisor before making any investment decisions.
