JK Cement Ltd., a leading name in India’s cement industry, has cemented its position as a major player in the grey cement and white cement segments. With a commitment to quality and innovation, the company has expanded its presence across domestic and international markets. Recent capacity expansions and a focus on sustainability have further strengthened its growth trajectory. But is JK Cement a compelling investment choice?
Let’s dive into the company’s fundamentals, growth drivers, and financial insights.
Stock Overview
| Ticker | JKCEMENT |
| Industry/Sector | Construction Materials (Cement) |
| Market Cap (₹ Cr.) | 38,208 |
| Free Float (% of Market Cap) | 53.99% |
| 52 W High/Low | 5112.50 / 3642.00 |
| P/E | 52.89 (Vs Industry P/E of 45.26) |
| EPS (TTM) | 93.25 |
About JK Cement
JK Cement Ltd., a key player in the Indian cement industry, has cemented its reputation through decades of operational excellence. Founded in 1975, the company has grown to become one of the leading producers of grey cement and the largest manufacturer of white cement in India.
With its extensive manufacturing footprint across the country and overseas, JK Cement continues to be a preferred choice in the construction and infrastructure sectors.
Key business segments
JK Cement operates primarily in the following key business segments:
- Grey Cement: Contributes a significant portion to revenue, and it remains the primary segment. The company serves residential, commercial, and infrastructure projects across India.
- White Cement: JK Cement is the largest producer of white cement in India under the brand “JK White Cement.” Its premium product offering is widely used for architectural and decorative applications.
- Wall Putty: The company has established a dominant market position with its “JK WallMaxX” product, catering to growing demand in the housing sector.
- International Operations: With its UAE plant, JK Cement has a significant presence in the Middle East and Africa, exporting to over 40 countries.
Primary growth factors for JK Cement
JK Cement’s key growth drivers:
- Infrastructure Push: Government-led investments in highways, metro projects, and urban housing developments are boosting demand for cement.
- Rural Housing Demand: Initiatives like PMAY (Pradhan Mantri Awas Yojana) are driving construction activity in rural and semi-urban regions.
- Capacity Expansion: Recent capacity expansions at Panna, Hamirpur, and other locations have increased overall production capacity to over 23 MTPA (Million Tonnes Per Annum).
- Sustainability Initiatives: JK Cement is investing in alternative fuels, renewable energy, and waste heat recovery systems, reducing its carbon footprint.
Detailed competition analysis for JK Cement
Key Financial Metrics – FY 24;
| Company | Revenue(₹ Cr.) | EBITDA(₹ Cr.) | EBITDA Margin (%) | PAT(₹ Cr.) | PAT Margin (%) | P/E (TTM) |
| JK Cement | 11556.00 | 2059.80 | 17.82% | 789.93 | 6.84% | 52.89 |
| Ultratech Cement | 70908.14 | 12968.56 | 18.29% | 6981.95 | 9.85% | 54.29 |
| Ambuja Cement | 33159.64 | 6399.51 | 19.30% | 4715.11 | 14.22% | 31.06 |
| Shree Cement | 20520.98 | 4516.74 | 22.01% | 2396.16 | 11.68% | 89.96 |
| ACC Ltd. | 19958.92 | 3061.66 | 15.34% | 2323.61 | 11.64% | 14.06 |
Key insights on JK Cement
- Achieved a revenue CAGR of 17% and 20% over the last 5 and 3 years, driven by capacity expansion and premium product offerings.
- Maintains EBITDA margins of 13% to 18%, supported by operational efficiency and cost management.
- Delivered a PAT CAGR of 25% over the last 5 years, reflecting robust financial performance.
- Reduced Debt-to-Equity from 1.08 in 2020 to under 1 in 2024, ensuring financial stability.
- Leading in the white cement and wall putty segment, contributing to stable margins.
- Increased use of renewable energy and alternative fuels, improving ESG performance.
- Consistent dividend payouts backed by strong cash flows.
Recent financial performance of JK Cement for Q3 FY25
| Metric | Q3 FY24 | Q2 FY25 | Q3 FY25 | QoQ Growth (%) | YoY Growth (%) |
| Revenue (₹ Cr.) | 2934.83 | 2560.12 | 2930.28 | 14.46% | -0.16% |
| EBITDA (₹ Cr.) | 625.11 | 283.97 | 492.12 | 73.30% | -21.27% |
| EBITDA Margin (%) | 21.30% | 11.09% | 16.79% | 570 bps | -451 bps |
| PAT (₹. Cr.) | 283.81 | 136.15 | 189.22 | 38.98% | -33.33% |
| PAT Margin (%) | 9.67% | 5.32% | 6.46% | 114 bps | -321 bps |
| Adjusted EPS (₹) | 36.73 | 16.28 | 24.54 | 50.74% | -33.19% |
JK Cement Financial Update (Q3 FY25)
Standalone Highlights
- Net sales declined by 3% YoY to ₹2,606 crore, while revenue from operations fell by 2% YoY to ₹2,716 crore.
- EBITDA stood at ₹489 crore, down 20% YoY but up 79% QoQ, with an EBITDA margin of 18.7% compared to 22.6% in Q3 FY24.
- PAT came in at ₹205 crore, significantly higher than ₹45 crore in Q2 FY25, though lower than ₹289 crore in Q3 FY24.
- EBITDA per tonne improved to ₹1,040 in Q3 FY25 from ₹649 in Q2 FY25, but below ₹1,335 in Q3 FY24.
Business Highlights
- Grey cement volume grew by 5% YoY to 4.35 MT, and white cement volume increased by 6% YoY to 0.57 MT, leading to a combined volume growth of 5% YoY to 4.9 MT.
- Capacity utilization stood at 73% for cement and 85% for clinker.
- Sales realization was ₹4,757 per tonne, with trade sales at 66% and premium product sales at 16% of trade sales.
Capex
- Planned capex for FY26 is approximately ₹1,700 crore, with an additional ₹174 crore allocated for the Saifco deal.
- In FY25, ₹1,400 crore has been spent out of the ₹1,900 crore budgeted capex.
Outlook
- Management projects a 10% YoY volume growth for FY26.
- The paint business is expected to post a loss of approximately ₹50 crore in FY25.
- White cement volume could face disruption as Asian Paints plans to establish its own plant in UAE.
Company valuation insights – JK Cement
JK Cement is trading at a TTM P/E of 52.89, above the industry average of 45.26, with a 14.5% return over the past year, outperforming the Nifty 50’s 4.7% gain.
Strong market presence in North India and expansion into the Central region are expected to drive growth, supported by government-led infrastructure projects, affordable housing, and real estate demand. Capacity expansion (18% CAGR over five years, with a further 25% increase in FY26) and cost-saving measures enhance its competitive edge.
We project a 12%/9%/25%/36% CAGR for Volume/Revenue/EBITDA/APAT over FY24-27E. Applying a 14.5x multiple to its FY27E EBITDA of ₹2,933 crore, we estimate a target price of ₹5,500, implying a 12% upside.
Major risk factors affecting JK Cement
- Input Cost Volatility: Fluctuations in raw material prices like limestone, coal, and pet coke can impact margins.
- Regulatory Changes: Environmental norms and compliance costs may increase operational expenses.
- Competition: Aggressive pricing by peers in key markets can pressure margins.
- Economic Slowdown: A downturn in construction and infrastructure activities could reduce cement demand.
Technical analysis of JK Cement share
Stock volume and delivery surged 2x compared to their 5-day average with a 1% price move, indicating heightened market interest.
On the weekly chart, JK Cement is trading in an ascending channel, reflecting strong upward momentum. The stock is comfortably positioned above all key moving averages, further supporting the positive trend.
The MACD is firmly positive at 67.05, with the MACD line above the signal line, indicating a continuation of the uptrend. The RSI stands at 65.84, nearing the overbought zone, while the relative RSI for 21 and 55 days remains positive at 0.03 and 0.04, respectively, showcasing consistent outperformance against its benchmark. The ADX at 27.97 suggests a well-established trend.
If the stock sustains above its immediate resistance of ₹5,250, it could advance towards the target price of ₹5,500. On the downside, strong support is observed at ₹4,500.
- RSI: 65.84 (Near Overbought)
- ADX: 27.97 (Strong Trend)
- MACD: 67.05 (Positive)
- Resistance: ₹5,250
- Support: ₹4,500
JK Cement stock recommendation
Current Stance: Buy with a target price of ₹5,500 (12-month horizon); driven by strong capacity expansion, cost efficiency, and sustained demand growth.
Why Buy Now?
Market Expansion: Strong presence in North India and expanding footprint in the Central region to drive volume growth.
Infrastructure Push: Government-led infrastructure development and affordable housing initiatives will support cement demand.
Capacity Additions: 25% capacity growth expected in FY26, enhancing market share and profitability.
Operational Efficiency: Cost-saving measures and higher utilization rates to drive EBITDA growth.
Portfolio Fit:
With its market leadership in white cement, aggressive capacity expansion, and cost management strategies, JK Cement offers a compelling opportunity for investors seeking exposure to India’s infrastructure and real estate growth story.If you found this helpful and want regular stock trade calls, check out my community on StockGro here: https://app.stockgro.club/ui/social/tradeViews/groupFeed/07a7b961-b8ca-42ce-baf3-a9eec781b6ebJK Cement: Budget 2025-26 opportunities
- Infrastructure push: Government projects like roads, highways, and PMAY will boost cement demand.
- Capex-led growth: Industrial corridors and logistics parks will drive construction activity.
- Sustainability focus: Support for renewable energy and carbon-neutral production enhances cost efficiency.
- Urban & Rural development: Smart cities and rural infrastructure programs will spur demand.
- PLI impact: Factory construction and warehousing expansion will support long-term cement demand.
Final thoughts
With its strong market presence, strategic capacity expansions, and commitment to sustainability, JK Cement is well-positioned to capitalise on India’s growing infrastructure needs. For investors seeking exposure to the building materials sector, JK Cement offers a solid combination of growth potential and operational resilience.
