Buy JK Cement, target price Rs 5,532: Choice Equity Broking

Choice Equity Broking Private Ltd has a buy call on JK Cement with a target price of Rs 5532. The current market price of JK Cement is Rs 4675.
JK Cement, incorporated in 1994, is a Mid Cap company with a market cap of Rs 36286.72 crore, operating in the cement sector.

JK Cement's key products/revenue segments include Cement and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 2974.83 crore, up 14.51% from last quarter Total Income of Rs 2597.90 crore and up .05 % from last year same quarter Total Income of Rs 2973.29 crore. The company has reported net profit after tax of Rs 189.22 crore in the latest quarter.

The company?s top management includes Mrs.Sushila Devi Singhania, Ms.Praveen Mahajan, Mr.Sudhir Jalan, Mr.Ashok Sinha, Mr.Ashok Kumar Sharma, Mrs.Deepa Gopalan Wadhwa, Mr.Saurabh Chandra, Mr.Paul Heinz Hugentobler, Mr.Mudit Aggarwal, Mr.Ajay Kumar Saraogi, Mr.Madhavkrishna Singhania, Dr.Raghavpat Singhania, Dr.Nidhipati Singhania, Mr.Rakesh Sethi. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 8 Crore shares outstanding.

Investment Rationale
Choice Equity Broking has revised its FY26/27 EPS estimates by 0.6%/3.9% and upgrading our rating to ?BUY? with a revised TP of INR5,532, valuing it at 16x(revised because of improving cement outlook and management commentary on EBITDA/t improvement) on FY27 EV/EBITDA. The management is confident about cement volume growth, projecting a 10% increase in FY26. Additionally, the company has raised its FY26 capex guidance to Rs 1,750 million to support the expansion of Saifco Cement. This strategic acquisition is expected to help the company penetrate new markets and strengthen its market presence.