D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - Axis Capital (NYSE:AXS) Limited has downgraded JK Cement Ltd (NS:JKCE) from Add to Reduce while raising its price target to INR6,100.00 from INR5,650.00.
The downgrade comes despite Axis Capital’s positive outlook on JK Cement’s growth prospects, with the firm noting the company’s plans to double capacity to 50 mtpa by FY30 from the current 24.3 mtpa, as highlighted in JK Cement’s FY25 annual report.
Axis Capital projects strong growth for JK Cement, estimating EBITDA/PAT to achieve a 20%/33% CAGR over FY25-28, supported by a 10% CAGR in volume, leading the firm to raise its FY26-27E PAT estimates by 3%.
The research firm’s concerns center on JK Cement’s current valuation, which it considers limited in upside potential as the stock trades at 16.8x FY27E EV/EBITDA, representing a significant premium to both its historical valuation and peers.
Axis Capital also expressed concern about the quality of JK Cement’s earnings, noting that incentive accrual rose to Rs 152/t in FY25 and now contributes 15% to EBITDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.