Motilal Oswal has issued a buy rating on JK Cement with a target price of ₹6040 in its research report dated April 02, 2026. According to reports from Moneycontrol, the brokerage has revised its target price down from the earlier ₹6,780, while maintaining its bullish stance on the stock. The recommendation comes as the company navigates challenging cost pressures while maintaining healthy domestic demand trends.
As reported by Moneycontrol, the brokerage's research report was published on April 03, 2026, indicating the timing of their analysis. The recommendation comes amid ongoing market dynamics where cement companies are facing both opportunities and challenges in the current operating environment.
According to the Motilal Oswal report, input cost pressure remain elevated due to ~USD20/t rise in petcoke price, implying an incremental cost impact of ₹75-80/t. The company's management highlighted that higher packaging cost will also lead to rise in overall opex/t in 1QFY27. However, ongoing cost-saving initiatives such as higher green power share and logistics optimization are expected to partly offset these impacts.
As reported by Moneycontrol, JK Cement has outlined an aggressive capex-led expansion strategy, targeting capacity of >50mtpa over the medium term. The company plans a phased ramp-up to ~40mtpa by 1HFY28 and ~45mtpa by FY29, driven by key projects like Jaisalmer, Mudappur and Panna. Capex pegged at ₹90b over FY26-28 across these key projects, leading to an increase in net debt to ₹79b by FY28.
According to Motilal Oswal's analysis, the brokerage has cut EBITDA estimates by ~8% for FY27/FY28 mainly due to rising cost pressure. The company values JK Cement at 17x FY28E EV/EBITDA to arrive at the revised target price of ₹6,040. The net-debt to EBITDA ratio is likely to surge to 2.5x (vs. earlier target of 2.0x) by FY28 due to the expansion plans.
