JK Cement shares: Nuvama maintains 'Buy', trims target price

Nuvama Institutional Equities maintained its 'Buy' rating on JK Cement Ltd's stock, even as it trimmed the target price following pressure on cement realisations amid heightened competition.

In its latest note, Nuvama said JK Cement reported healthy performance in the third quarter of FY26. Grey cement volumes rose 23 per cent year-on-year (YoY), while EBITDA came in around 11 per cent above estimates, reflecting operational efficiencies and scale benefits. However, grey cement realisations declined about 3 per cent quarter-on-quarter (QoQ).

The brokerage highlighted that blended EBITDA per tonne contracted 9 per cent YoY to Rs 927. It added that competitive intensity in the cement sector has increased. As a result, Nuvama has cut its EBITDA estimates for FY26, FY27 and FY28 by 10 per cent, 8 per cent and 4 per cent, respectively.

On the operational front, it noted that JK Cement has recently commissioned 3 million tonnes per annum (mtpa) of cement capacity and expects to commission another 3 mtpa split grinding unit in Bihar by February 2026. The brokerage also stated that non-trade prices have shown improvement over the past month.

That said, Nuvama retained its 'Buy' call while revising the target price to Rs 7,438 from Rs 7,534 earlier, valuing the stock at 19 times Q3FY28E EV/EBITDA.

In the market, JK Cement shares were trading 3.33 per cent higher at Rs 5,982.10 during Tuesday's session. At this price, Nuvama's revised target implies a potential upside of 24.34 per cent.