According to Motilal Oswal's research report dated August 06, 2026, the brokerage has issued a buy rating on JK Lakshmi Cement with a target price of ₹700. The recommendation is based on the company's strong operational performance in Q1FY27, which exceeded analyst expectations across key metrics.
As reported by Motilal Oswal, JK Lakshmi Cement's Q1FY27 revenue grew approximately 9% year-on-year to ₹19.0 billion, which was 7% above the brokerage's estimates. The revenue growth was driven by higher volumes and improved realizations compared to analyst expectations. EBITDA declined approximately 17% year-on-year to ₹2.6 billion, though this represented a 9% beat over estimates. EBITDA per tonne declined around 23% year-on-year to ₹719, compared to the estimated ₹679. Operating profit margin contracted 4.3 percentage points year-on-year to approximately 14%, which was in line with expectations.
According to the research report, net profit after minority interest declined approximately 28% year-on-year to ₹1.1 billion, though this was 13% higher than the brokerage's estimates. Motilal Oswal expects the company's net debt to increase to ₹28.3 billion by FY28 compared to ₹15.2 billion as of June 2026. The net debt-to-EBITDA ratio is projected to reach 2.3x in FY28 versus 1.4x as of June 2026, given the company's aggressive capital expenditure plans.
As reported by Motilal Oswal, the stock is currently trading at 8x FY27E/FY28E EV/EBITDA. The brokerage values the stock at 9x FY28E EV/EBITDA to arrive at the target price of ₹700. The recommendation maintains a buy rating based on the company's operational performance and growth prospects despite the increased debt projections due to the aggressive capex plans.
