JK Lakshmi Cement, Birla Corp, HeidelbergCement: Jefferies lowers target prices after Q2 results
Jefferies lowered its target price on JK Lakshmi Cement to Rs 540 from Rs 620 earlier, while retaining its 'Hold' rating. The revised target is based on eight times the company's estimated September 2028 Ebitda.
- Nov 9, 2026,
- Updated Nov 9, 2026 11:58 AM IST
Jefferies has cut its target prices on three cement companies - JK Lakshmi Cement Ltd, Birla Corporation Ltd and HeidelbergCement India Ltd, following their September quarter results, while retaining its existing ratings on the stocks. The brokerage maintained 'Hold' on JK Lakshmi Cement and Birla Corporation, and an 'Underperform' rating on HeidelbergCement India. It also identified UltraTech Cement Ltd as its top pick in the sector.
In its November 6 report, titled Cement Sep-26Q: Costs Weigh; Can Pricing Catch Up?, Jefferies said cement companies were dealing with rising input costs, which had weighed on operating profitability despite healthy volume growth. The brokerage lowered its aggregate FY27-FY29 Ebitda estimates by around 1-4%, although its estimates for UltraTech Cement and Nuvoco Vistas remained broadly unchanged.
JK Lakshmi Cement Ltd: Jefferies lowered its target price on JK Lakshmi Cement to Rs 540 from Rs 620 earlier, while retaining its 'Hold' rating. The revised target is based on eight times the company's estimated September 2028 Ebitda.
The brokerage reduced its FY27, FY28 and FY29 Ebitda estimates by 8%, 5% and 4%, respectively. Its net profit estimates were cut by 16%, 14% and 11% over the same period. JK Lakshmi Cement reported Q2 FY27 Ebitda of Rs 154.1 crore, down 26% YoY, while its revenue increased 5.6% to Rs 1,616.9 crore.
Birla Corporation Ltd: Jefferies cut its target price on Birla Corporation to Rs 950 from Rs 1,030 earlier, retaining its 'Hold' rating. The revised target is based on seven times its estimated September 2028 Ebitda.
The brokerage expects volume growth to remain moderate, with a projected 5% compound annual growth rate (CAGR) over FY27-FY29.
Jefferies lowered its Ebitda estimates for FY27, FY28 and FY29 by 6% each. Its net profit estimates were reduced by 9%, 13% and 15%, respectively. Birla Corporation's Q2 FY27 Ebitda declined 25.3% YoY to Rs 227.8 crore, while revenue rose 9.5% to Rs 2,415.4 crore.
HeidelbergCement India Ltd: Jefferies reduced its target price on HeidelbergCement India to Rs 110 from Rs 135 earlier and maintained its 'Underperform' rating. The revised target is based on seven times estimated September 2028 Ebitda.
Jefferies cut its FY27, FY28 and FY29 Ebitda estimates by 3%, 8% and 7%, respectively. Its net profit estimates were lowered by 7%, 13% and 13%. The company reported Q2 FY27 Ebitda of Rs 48.2 crore, down 16.3% YoY, while revenue increased 11% to Rs 567.8 crore.
Jefferies' outlook on the cement sector
Jefferies said aggregate Ebitda across its cement coverage universe declined 1% YoY in Q2 FY27, although the figure was 6% above its estimates. UltraTech Cement delivered the strongest performance among the larger players, with Ebitda increasing 20% YoY. Ambuja Cements reported a sharp decline, while Shree Cement posted modest growth. Among smaller companies, JK Cement, JSW Cement and Nuvoco Vistas performed relatively better, while JK Lakshmi Cement, Dalmia Bharat and Birla Corporation were among the weaker performers.
The brokerage attributed the pressure on profitability largely to rising costs. Average cost per tonne increased 5-6% sequentially, compared with its estimate of 4-5%. Industry-wide Ebitda per tonne declined by around Rs 125 YoY to approximately Rs 803 in the September quarter. Companies also indicated a further increase of around Rs 100 per tonne in variable costs during the December quarter, with additional pressure possible in the following quarters if fuel prices remain elevated.
Jefferies has cut its target prices on three cement companies - JK Lakshmi Cement Ltd, Birla Corporation Ltd and HeidelbergCement India Ltd, following their September quarter results, while retaining its existing ratings on the stocks. The brokerage maintained 'Hold' on JK Lakshmi Cement and Birla Corporation, and an 'Underperform' rating on HeidelbergCement India. It also identified UltraTech Cement Ltd as its top pick in the sector.
In its November 6 report, titled Cement Sep-26Q: Costs Weigh; Can Pricing Catch Up?, Jefferies said cement companies were dealing with rising input costs, which had weighed on operating profitability despite healthy volume growth. The brokerage lowered its aggregate FY27-FY29 Ebitda estimates by around 1-4%, although its estimates for UltraTech Cement and Nuvoco Vistas remained broadly unchanged.
JK Lakshmi Cement Ltd: Jefferies lowered its target price on JK Lakshmi Cement to Rs 540 from Rs 620 earlier, while retaining its 'Hold' rating. The revised target is based on eight times the company's estimated September 2028 Ebitda.
The brokerage reduced its FY27, FY28 and FY29 Ebitda estimates by 8%, 5% and 4%, respectively. Its net profit estimates were cut by 16%, 14% and 11% over the same period. JK Lakshmi Cement reported Q2 FY27 Ebitda of Rs 154.1 crore, down 26% YoY, while its revenue increased 5.6% to Rs 1,616.9 crore.
Birla Corporation Ltd: Jefferies cut its target price on Birla Corporation to Rs 950 from Rs 1,030 earlier, retaining its 'Hold' rating. The revised target is based on seven times its estimated September 2028 Ebitda.
The brokerage expects volume growth to remain moderate, with a projected 5% compound annual growth rate (CAGR) over FY27-FY29.
Jefferies lowered its Ebitda estimates for FY27, FY28 and FY29 by 6% each. Its net profit estimates were reduced by 9%, 13% and 15%, respectively. Birla Corporation's Q2 FY27 Ebitda declined 25.3% YoY to Rs 227.8 crore, while revenue rose 9.5% to Rs 2,415.4 crore.
HeidelbergCement India Ltd: Jefferies reduced its target price on HeidelbergCement India to Rs 110 from Rs 135 earlier and maintained its 'Underperform' rating. The revised target is based on seven times estimated September 2028 Ebitda.
Jefferies cut its FY27, FY28 and FY29 Ebitda estimates by 3%, 8% and 7%, respectively. Its net profit estimates were lowered by 7%, 13% and 13%. The company reported Q2 FY27 Ebitda of Rs 48.2 crore, down 16.3% YoY, while revenue increased 11% to Rs 567.8 crore.
Jefferies' outlook on the cement sector
Jefferies said aggregate Ebitda across its cement coverage universe declined 1% YoY in Q2 FY27, although the figure was 6% above its estimates. UltraTech Cement delivered the strongest performance among the larger players, with Ebitda increasing 20% YoY. Ambuja Cements reported a sharp decline, while Shree Cement posted modest growth. Among smaller companies, JK Cement, JSW Cement and Nuvoco Vistas performed relatively better, while JK Lakshmi Cement, Dalmia Bharat and Birla Corporation were among the weaker performers.
The brokerage attributed the pressure on profitability largely to rising costs. Average cost per tonne increased 5-6% sequentially, compared with its estimate of 4-5%. Industry-wide Ebitda per tonne declined by around Rs 125 YoY to approximately Rs 803 in the September quarter. Companies also indicated a further increase of around Rs 100 per tonne in variable costs during the December quarter, with additional pressure possible in the following quarters if fuel prices remain elevated.