UltraTech Cement, JK Cement shares: Brokerages reaffirm bullish view after Q1; check latest target prices

Brokerages largely retained their positive outlooks on UltraTech Cement Ltd and JK Cement Ltd after the companies came up with their Q1 FY27 earnings.

UltraTech Cement

Motilal Oswal Financial Services Ltd (MOFSL) said UltraTech Cement's Q1 FY27 operating performance was broadly in line with its estimates.

"UltraTech Cement's Q1 FY27 operating performance was in line with our estimates. Consol. revenue/EBITDA increased ~16 per cent/14 per cent YoY to Rs 24,600 crore/Rs 5,000 crore. EBITDA/t inched up ~1 per cent YoY to Rs 1,214. OPM contracted ~40 bps (basis points) YoY to ~20 per cent. Adjusted PAT grew ~16 per cent YoY to Rs 2,610 crore (~5 per cent beat, led by lower-than-estimated depreciation and interest costs).

"We largely maintain our earnings estimates for FY27/FY28. We value UltraTech Cement at 18x FY28E EV/EBITDA to arrive at a TP (target price) of Rs 13,800. Reiterate BUY," MOFSL added.

JM Financial raised its target price while maintaining its positive recommendation. "Factoring in the Q1 FY27 performance, we marginally increase FY27–28E EBITDA by 1–3 per cent and introduce FY29E. Maintain BUY with a revised TP of Rs 14,500 (earlier Rs 13,850) based on 19x Jun'28E EV/E (post quarterly roll-over). We reiterate UltraTech as our top pick in the sector."

Nuvama Institutional Equities also reiterated its bullish view. "UltraTech Cement is consistently gaining market share while exhibiting exemplary cost control despite a challenging operating environment. Trajectory of cement prices and fuel costs will determine stock performance going ahead. Maintain 'BUY' with a revised TP of Rs 15,209 (from Rs 14,502) as we roll forward valuations (20x EV/EBITDA) to Q1 FY29E. At CMP, the stock trades at 16.5x FY28E EV/EBITDA."

Elara Capital retained its 'Accumulate' rating as well. "The ramp-up of recently commissioned capacities, ongoing cost-efficiency initiatives, and incremental volumes from the complete brand transition of India Cements and Kesoram Industries should support earnings growth. Thus, we reiterate Accumulate, with an unchanged TP of Rs 13,492, based on 18x March 2028E EV/EBITDA."

JK Cement

On JK Cement, MOFSL said the company's EBITDA came in above its estimates, supported by stronger-than-expected volumes and white cement realisations.

"JK Cement's Q1 FY27 EBITDA was above our estimates, led by higher-than-estimated volume and white cement realization. Revenue grew ~20 per cent YoY to Rs 4,030 crore (+8 per cent vs. our estimates), while EBITDA declined ~6 per cent YoY to Rs 650 crore (~7 per cent beat), driven by higher opex/t (up ~8 per cent YoY/QoQ). OPM contracted 4.5pp YoY to ~16 per cent (in line). EBITDA/t declined ~20 per cent YoY to Rs 979 (in line). PAT declined ~14 per cent YoY to Rs 280 crore (~13 per cent beat, led by lower-than-estimated depreciation)."

"We raised our EBITDA estimate by ~3 per cent for FY27/FY28 (each), given the lower cost guidance. We value JKCE at 17x FY28E EV/EBITDA to arrive at a TP of Rs 6,430. Reiterate BUY," MOFSL added.

JM Financial also revised its estimates upwards while retaining its recommendation. "Factoring in Q1 FY27 performance, we are increasing FY27E–28E EBITDA estimates by 2–5 per cent and introducing FY29E EBITDA estimates. We reiterate ADD with a revised TP of Rs 6,250/share (earlier Rs 6,000) based on 16.5x Jun'28E EV/E (roll forward by a quarter, 17x earlier)."

Nuvama Institutional Equities maintained its 'Buy' rating. "Retain 'BUY' with a TP of Rs 7,034 based on 19x Q1 FY29E EV/EBITDA. At CMP, the stock trades at 15.8x FY28E EV/EBITDA," it stated.

Elara Capital also retained its recommendation. "The ramp-up of capacities commissioned in H2FY26, along with ongoing cost-efficiency initiatives, should support margin recovery. Thus, we reiterate Accumulate with an unchanged SoTP-TP of Rs 5,815."