JK Cement shares rally nearly 5% after Jefferies double upgrades stock to ‘buy’ on healthy Q3 beat

Shares of JK Cement in trade on Wednesday (January 24) gained as much as 4.64 per cent to the day’s high of Rs 4131.3 after global brokerage Jefferies double upgraded the stock to ‘buy’ from the previous ‘hold’ rating with a raised target price of Rs 4610 per share. The revised target price implies the stock has the potential to rally another 17 per cent.

The brokerage maintained that the company reported a healthy Q3 beat with industry-leading volume growth and profitability. Jefferies also noted that the company announced a new 6 mtpa expansion with a 30 mtpa cap targeted for FY26 end. As per the brokerage, the company’s expansion plans will make the cement manufacturer on track for industry-leading growth. 

Jefferies upgrades FY24-26 EBITDA estimate to 5-12 per cent.

At around 11:53 am, shares of the company traded 3.36 per cent higher at Rs 4080.95 per share on NSE.

Last week, the company reported its Q3 numbers, with net profit climbing a significant 663 per cent on year to Rs 284 crore. In the same period last year, the company posted net profit of Rs 37.2 crore, said the company in a regulatory filing.

What other brokerages suggest for JK Cement?

Brokerage firm Centrum Broking retained its ‘Add’ rating on the counter with a revised target price of Rs 4,210 (earlier Rs 3547). The brokerage is of the view that the company’s new capex will help the cement major to maintain its consistent volume growth in its existing market, and foray in the Bihar market would enhance its revenue diversification and provide an impetus for future growth. Consequently, the brokerage has revised its EBITDA estimate for FY25/FY26 higher by 16 per cnet/15 per cent.

The consensus recommendation from 19 analysts on the counter is ‘hold’, with 8 of them suggesting a ‘strong buy’, Trendlyne data suggests.

JK Cement is a mid-cap company with a market cap of Rs 31,540.9 crore. The company is primarily engaged in manufacturing cement and cement products. Its product portfolio includes grey cement, white cement and wall putty.