---
title: "Buy JK Cement; target of Rs 7200: Choice Institutional Equities"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/273033717.md"
description: "Choice Institutional Equities maintains a BUY rating on JK Cement with a target price of INR 7,200. The investment thesis is supported by favorable cement sector conditions, a capacity expansion plan aiming for over 36 Mnt by FY27, a commitment to green power, a disciplined leverage strategy, and expected ROCE growth. The valuation is based on an EV to CE multiple of 3.7x for FY27E/FY28E, reflecting improving fundamentals. Users are advised to consult certified experts before making investment decisions."
datetime: "2026-01-20T05:20:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/273033717.md)
  - [en](https://longbridge.com/en/news/273033717.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/273033717.md)
---

# Buy JK Cement; target of Rs 7200: Choice Institutional Equities

**Choice Institutional Equities's report on JK Cement**

We maintain our BUY rating on JKCE, with a target price of INR 7,200. Key pillars of our investment thesis are: 1) Cement sector tailwinds, such as better demand and healthy pricing heading into Q4 and FY27, 2) Capacity expansion plan is on track with a potential to reach ~36+ Mnt by FY27 end (~28.7 Mnt as of December 2025 ), 3) Commitment to costefficiency through increasing adoption of green power, targeting 75% by FY30, 4) Disciplined leverage strategy, with net debt to EBITDA well below 2x and 5) ROCE expansion of ~495 bps over FY25–28E under reasonable operational assumptions. We employ a robust EV to CE (Enterprise Value to Capital Employed) based valuation framework, which allows us a rational basis to assign a valuation multiple which captures improving fundamentals.

**Outlook**

We arrive at a 1-year forward TP of INR 7,200/share for JKCE. We assign an EV/CE multiple of 3.7x/3.7x for FY27E/FY28E, which we believe is conservative, given expansion in ROCE from 11.2% in FY25 to 16.1% in FY28E. We did a sanity check of our EV/CE TP using implied EV/EBITDA, P/BV and P/E multiple. On our TP of INR 7,200 FY28E implied EV/EBITDA/PB/PE multiple is 17.3x/5.5x/31.2x.

**For all recommendations report, click here**

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

JK Cement - 2001026 - choice

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