Mirae Asset ShareKhan has issued a 'BUY' rating on JK Lakshmi Cement with a revised target price of ₹930 against the current market price of ₹728.35. Motilal Oswal has also maintained its 'BUY' rating with an updated target price of ₹900 in its research report dated February 04, 2026. The brokerage values the stock at 10x FY28E EV/EBITDA, representing a significant revision from the earlier target of Rs 881 recommended by Prabhudas Lilladher. According to Motilal Oswal's latest analysis, the stock is currently trading at an EV of 9x/8.7x FY27E/28E EBITDA, with the revised target reflecting improved market conditions and stronger growth prospects. As reported by multiple analysts, the company's market capitalization stood at approximately ₹18,500 crore as of early February 2026, trading with forward EV/EBITDA multiples that appear attractive compared to peers.
JK Lakshmi Cement reported a strong operating performance in Q3FY26 with standalone revenue growing 6.1% YoY, driven by 8.2% volume growth to 3.3 million tonnes and 2% decline in realizations per tonne largely due to higher share of non-trade sales. According to Mirae Asset ShareKhan's detailed analysis, total cost per tonne fell 4.3% on lower employee costs, power and fuel savings, and reduced transportation expenses. The company's non-trade channel's share increased to 51% in Q3FY26 (vs. 47% in Q2FY26 and 43% in Q1FY26), while trade prices remained largely stable with management clarifying that the price gap versus larger peers did not widen. The performance was impacted by a sharp 10% QoQ cut in average realizations due to higher volumes in the non-trade segment post commissioning of 1.5mtpa Surat GU in September 2025.
Capacity expansion remains on track with the company expected to increase capacity from 18 mtpa to 22.6 mtpa by FY28, led by the Durg brownfield expansion which includes 4.6-mtpa grinding capacity and a 2.3-mtpa clinker expansion. The total capex project is estimated at ₹3,000 crore, with about 70% funded through debt. The consolidation of key subsidiaries, particularly UCWL, is likely to streamline operations and management while generating synergistic benefits. Management indicated that non-trade cement prices have increased by ₹10-15 per bag across regions post December 2025, with trade prices expected to follow on strong demand momentum and fuel cost inflation. The cement industry in early 2026 navigated a complex environment characterized by cautious demand recovery, particularly in the retail segment, and volatile input cost inflation.
The brokerage has cut estimates for FY27/28E by 2%/1% on lower pricing assumptions and expects JK Lakshmi Cement to deliver EBITDA/volume CAGR of 21%/10% over FY25-28E. As reported by multiple analysts, the company is projected to deliver strong growth metrics despite current pricing pressures. The stock is currently trading at an EV/EBITDA multiple of approximately 7.6x/7.0x/6.5x for FY2026E/FY2027E/FY2028E earnings. Analysts maintain a positive stance, projecting robust EBITDA and volume growth through FY28, while slightly adjusting price targets. The revised estimates reflect the impact of recent market conditions on the cement manufacturer's near-term performance. The company's forward EV/EBITDA multiples of 9x for FY27E and 8.7x for FY28E appear attractive when juxtaposed against peers, many of which trade at higher multiples reflecting more stable margin profiles or stronger pricing power.
