JSW Cement stock: Valuation fair but expect high debt; here's why
JSW Cement stock traded at Rs 150.40 today against the previous close of Rs 150 on BSE. Market cap of the firm stood at Rs 20,286 crore.
- Aug 19, 2025,
- Updated Aug 19, 2025 9:33 AM IST
Shares of JSW Cement were trading on a flat note on Tuesday after the JSW Group firm received a neutral rating from Motilal Oswal Financial Services. JSW Cement stock traded at Rs 150.40 today against the previous close of Rs 150 on BSE. Market cap of the firm stood at Rs 20,286 crore.
The firm, which currently operates seven plants across India delivered a CAGR of 8%/9% in grinding capacity/volume over FY19-25, outperforming the industry, led by timely project execution and a diversified product mix, said the brokerage.
The brokerage sees a CAGR of 19%/31% in revenue/EBITDA over FY25-28, led by higher sales volume and pricing improvement.
"EBITDA/tonne is estimated to clock a CAGR of ~12% over FY25-28. We expect JSWC to report a profit of INR3b in FY26E (vs. a pre-CCPS loss of INR554m in FY25). RoIC should be at 8.3% in FY28E vs. 5.7% in FY25," said MOFSL. The brokerage estimates a capex of Rs 5,600 crore during FY26-28E, which would be mainly for the Rajasthan integrated unit.
"The remaining capex will be used for a grinding unit of Shiva Cement, a greenfield GU in Punjab and brownfield capacity expansion in the south region. Net debt is estimated to be at Rs 5750 crore in FY28E vs. Rs 4070 crore (excl. CCPS) in FY25. Net debt-to-EBITDA ratio is estimated to remain elevated at 3 times in FY28E vs. 3.2 times/4.7 times in FY24/FY25," added MOSL.
The brokerage finds the stock fairly valued and it has initiated coverage with Neutral on the cement stock.
The target price of Rs 163, an upside of 9% from the previous close. It valued the stock at 15x Sep’27E EV/EBITDA.
The stock was listed on August 14 this year. JSW Cement shares listed with a premium of over 4 percent over the IPO price. The IPO attracted strong investor interest between August 7 - 11 in the primary market. The Rs 3,600-crore issue was subscribed 7.77 times.
Shares of JSW Cement were trading on a flat note on Tuesday after the JSW Group firm received a neutral rating from Motilal Oswal Financial Services. JSW Cement stock traded at Rs 150.40 today against the previous close of Rs 150 on BSE. Market cap of the firm stood at Rs 20,286 crore.
The firm, which currently operates seven plants across India delivered a CAGR of 8%/9% in grinding capacity/volume over FY19-25, outperforming the industry, led by timely project execution and a diversified product mix, said the brokerage.
The brokerage sees a CAGR of 19%/31% in revenue/EBITDA over FY25-28, led by higher sales volume and pricing improvement.
"EBITDA/tonne is estimated to clock a CAGR of ~12% over FY25-28. We expect JSWC to report a profit of INR3b in FY26E (vs. a pre-CCPS loss of INR554m in FY25). RoIC should be at 8.3% in FY28E vs. 5.7% in FY25," said MOFSL. The brokerage estimates a capex of Rs 5,600 crore during FY26-28E, which would be mainly for the Rajasthan integrated unit.
"The remaining capex will be used for a grinding unit of Shiva Cement, a greenfield GU in Punjab and brownfield capacity expansion in the south region. Net debt is estimated to be at Rs 5750 crore in FY28E vs. Rs 4070 crore (excl. CCPS) in FY25. Net debt-to-EBITDA ratio is estimated to remain elevated at 3 times in FY28E vs. 3.2 times/4.7 times in FY24/FY25," added MOSL.
The brokerage finds the stock fairly valued and it has initiated coverage with Neutral on the cement stock.
The target price of Rs 163, an upside of 9% from the previous close. It valued the stock at 15x Sep’27E EV/EBITDA.
The stock was listed on August 14 this year. JSW Cement shares listed with a premium of over 4 percent over the IPO price. The IPO attracted strong investor interest between August 7 - 11 in the primary market. The Rs 3,600-crore issue was subscribed 7.77 times.