Investec has shared its latest ratings and sectoral views:
Investec on JK Cement:
Investec has maintained a Buy rating on JK Cement with a target price of ₹5,147. The management has projected 7-8% volume growth for Q4FY25E and 10% for FY26E. The company reiterated its cost-saving target of ₹150-200 per tonne over FY25-27E. Additionally, JK Cement is well-positioned for growth with its incremental pipeline, reserve expiries, and auction wins. The recent Safico acquisition is expected to aid its expansion into the promising Jammu & Kashmir market. Investec views JK Cement as a preferred mid-cap play in the sector.
Investec on ACC:
The brokerage continues to Hold ACC with a target price of ₹2,845. While ACC reported an EBITDA miss for Q3, the adjusted basis remains aligned with expectations. Volume-driven growth was offset by lower spreads, according to Investec. While the growth pipeline, lease expiries, and promoter interest keep ACC attractive, Investec prefers Ambuja Cement over ACC.
Investec on consumer goods:
Rajasthan-based consumer channel checks reveal rural FMCG stockists are outpacing urban growth. There is a noticeable expansion in 1-commerce adoption beyond metros. Jewellery demand remains strong, with lab-grown diamonds showing early penetration signs. Festive and wedding seasons supported growth for select apparel players. Investec also highlighted Birla’s paint division, noting significant dealer coverage achieved in a short time frame.
Investec on industrials:
Government and industrial orders remained steady in Q3, with 20% YoY growth in 9MFY25. Thermal power, water/irrigation, and building projects led the order mix. Ordering from the central government showed notable improvement in Q3 (22% of order awards vs 14% in H1). L&T benefited significantly from this momentum. Investec sees the upcoming Union Budget as crucial for providing insights into infrastructure spending, given PSU ordering is at its highest level since Q1FY17.
Disclaimer: The above information is sourced from Investec’s brokerage updates. This does not constitute financial advice. Investors are encouraged to consult with their financial advisors before making any investment decisions.
