Construction Industry News
JK Cement will prioritise growth of its paints business, targeting a turnover of Rs 250-300 crore by fiscal 2024-25. Anuj Khandelwal, Business Head, Grey Cement Division, highlighted the significant synergies with the existing white cement and putty businesses.
The company, headquartered in Kanpur, Uttar Pradesh, expects a growth of 6-8% in the cement sector in the second half of FY25 compared to FY24. As one of India's leading producers of grey cement and a global leader in white cement, JK Cement is gearing up for a surge in demand.
Khandelwal noted that the industry has witnessed flat growth in the last six months due to a high comparison base. However, he expects demand to recover in the second half of FY25, predicting a volume growth of 6-8% for JK Cement compared to FY24. If the industry sees a growth rate of 3-4% in FY25, JK Cement is targeting a growth of 7-8%.
Brokerage firm Motilal Oswal has maintained its 'buy' rating on JK Cement and set a target price of Rs 5,600 per share. The brokerage has also raised its EBITDA estimates for FY26 and FY27 by 3% and 7% respectively, and expects a compound annual growth rate (CAGR) of 11% in consolidated revenues and 18% in EBITDA from FY24 to FY27. This positive outlook is attributed to JK Cement's expanding operations, improved execution strategies and cost-saving measures.
Currently, the market cap of JK Cement stands at around Rs 36,882.11 crore, with the stock up nearly 51% in the past one year.
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