JK Cement Ltd. share price target

We maintain our BUY recommendation on the stock.

JK Cement (JKCE)’s consol. EBITDA grew 19% YoY to INR4.9b (est. INR4.7b), and EBITDA/t increased 14% YoY to INR1,003 (est. INR949) in 1QFY25.

Q4 revenue grew 10% YoY to Rs 29.4bn as grey cement volumes gained 13% YoY/QoQ; realisation resilient YoY with 1% drop

JK Cement (JKCE) consol. EBITDA grew 60% YoY to INR5.6b (est. INR6.1b)
and EBITDA/t increased 44% to INR1,077 (est. INR1,133) in 4QFY24.

JK Cement’s (JKCE) Q4FY24 EBITDA (of INR 5.48bn, up 51% YoY but down 10% QoQ) stood broadly in line with estimates as sustained drop in variable cost helped offset the operating leverage disappointment (of fixed cost being flat QoQ).

We maintain our BUY recommendation on the stock and revise our estimates, taking into consideration lower cement prices.

POWERIND: In-line quarter but valuations overdone; cut to SELL. FY25 Budget Preview: Focus to remain on consolidation. KMB: NIM intact QoQ; higher provisions dull profits. AXSB: Profits subdued despite strong business growth. HAVL: Slow quarter but summer could bring cheer; maintain BUY. KEII: Decent quarter; maintain HOLD. JKCE: Healthy performance but priced in. GLS: Strong margins make up for subdued revenue growth

We maintain our BUY recommendation on the stock.