Religare Capital has maintained 'Buy' on JK Cement (JKCE) after the company declared its second quarter results. The stock broker fixed price target at Rs 750.

Commenting on the results, Religare Capital said, ''JKCE posted a marginally lower EBITDA/t of Rs 582 (RCMLe Rs 605) and a 3% year-on-year (YoY) and 0.8% quarter-on-quarter (QoQ) growth in overall volumes for Q2FY16. PAT however declined by a sharp 58% YoY to Rs 137 million on higher interest (+50% YoY) and depreciation (+29% YoY) costs.''

Commenting on the investment rationale, the broking firm said, ''We cut our FY16, FY17 and FY18 estimates by 20%, 14% and 10% to factor in lower than expected volumes, realisations and margins, leading us to revise down our Sep'16 TP to Rs 750 from Rs 800. While FY16 is likely to see muted volume growth, we expect a rebound in FY17 and FY18 with the new capacity coming on-stream and an overall macro recovery in next two years. We believe the recent 3mmt expansion in north India should boost volume growth for JKCE over FY17E-FY18E. Maintain Buy.'' 

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