JK Cement hits new high in weak market, zooms 58% in 5 months; here's why

Business Standard

2 days ago

In the past five months, the stock price of JK Cement has outperformed the market by zooming 58 per cent
SI Reporter Mumbai
JK Cement share price today: Shares of JK Cement hit a new high of ₹7,060, rallying 4 per cent on the BSE in Tuesday's intra-day trade in an otherwise weak market on a healthy outlook. In comparison, the BSE Sensex was down 0.5 per cent at 80,641 at 10:04 AM.
In the past month, JK Cement has surged 13 per cent, as compared to a 3.3 per cent decline in the benchmark index. In the past five months, the stock price of JK Cement has outperformed the market by zooming 58 per cent. The stock had hit a 52-week low of ₹3,893.80 on November 18, 2024. Track LIVE Stock Market Updates Here
JK Cement Q1 results
In the April to June quarter (Q1FY26), JK Cement's standalone Ebitda grew 41 per cent year-on-year (Y-o-Y), but declined 8 per cent quarter-on-quarter (Q-o-Q) to ₹688 crore, driven mainly by higher other operating income. Blended Ebitda per tonne rose 23 per cent Y-o-Y, and declined 1 per cent Q-o-Q to ₹1,247.
In Q1, JK Cement increased grey cement capacity by 0.5 metric tons (Mt); it also announced a 0.6 Mt wall putty expansion at a capex of ₹200 crore to be commissioned by FY27.
JK Cement's Q1FY26 grey cement volume grew by ~16 per cent Y-o-Y to 5.06 Mt, and the overall combined volume was ~8 per cent above expectation as it continues to gain market share in central India (~50 per cent Y-o-Y) and incremental volume in South India (teen growth).
The company highlighted that it has recorded a decline in the northern region due to market conditions; however, it has maintained market share in all other regions. JK Cement is aiming to have ~1 Mt sales from Bihar by the end of FY26.
The rise in South India prices helped in improving grey cement realisation by 1 per cent Q-o-Q, despite flat prices in other markets. White cement realisation declined due to lower prices and a shift in product mix, with the prices likely to have bottomed out, InCred Equities said in JK Cement's annual report analysis.
Brokerages' view on JK Cement
Analysts at InCred Equities like JK Cement's presence and also expansion into regions having favourable dynamics, but the brokerage firm feels the current EV/t limits a further upside in the stock price. The downside risks are weak demand, pricing pressure, and delay in commissioning. Upside risks: Strong demand & pricing, sharp deleveraging, and cost control.
JK Cement remains on track to expand its grey cement capacity to 30 Mt by FY26 and 50 Mt by FY30, supporting strong volume growth and market share gains in the coming years. With structural cost-saving levers of ₹150-200 per tonne, and despite factoring in capex of ₹5,800 crore through FY28, analysts at JM Financial Institutional Securities expect net debt to remain contained at ₹3,000 crore-3,500 crore, supported by healthy cash flow generation.
Incorporating the Q1 outperformance, positive pricing outlook and expansion in the wall putty segment, the brokerage firm raises FY26–28 Ebitda estimates by 3-4 per cent. The brokerage firm maintains 'Buy' with a revised September 2026 target price of ₹7,050 per share. JK Cement remains the top pick in the mid-cap cement space, it added.