JK Cement stock's flawless run

Scaling without stretching

- Manvi Agarwal

K Cement Ltd's shares have rallied as much as 47% so far in 2025 on strong project execution, healthy earnings, and a clear growth roadmap.

In this backdrop, some brokerages have raised their valuation multiples. For instance, ICICI Securities Ltd now values JK Cement at 22X FY27 estimated EV/Ebitda (18X earlier), tracking its great project execution capabilities and its crowning achievement of the past 10 years' Ebitda per tonne being the most pronounced of cement majors.

"ROE (return on equity) too has transcended peers all along," said ICICI on 1 September. The brokerage reckons JK Cement's valuation multiple may converge to being at par with peers once growth matures.

JM Financial Institutional Securities raised its target multiple by a notch to 18.5X, with strong earnings visibility (>20% Ebitda CAGR), controlled leverage, and improving return ratios.