Synopsis:
JSW Cements is in focus as Motilal Oswal believes that the stock can rise by another 33 percent from its current level, citing strong expansion plans, reducing dependence on the southern region, and more.
The shares of this leading market leader cement company is in focus after Motilal Oswal expects a significant upside. In this article, we will try to understand the rationale behind its rationale.
With a market capitalization of Rs 21,405 crore, the shares of JSW Cements are currently trading at Rs 157 per share. Post its debut on the stock exchanges in August 2025, the stock has delivered a return of only 3 percent.
Analyst Comments
Leading brokerage house, Motilal Oswal, has assigned a Buy call on the stock with a target price of Rs 200 per share (Bull Case), signalling an upside potential of 33 percent from its previous day closing price of Rs 150.02 per share.
Motilal Oswal pointed out that JSW Cement stands out as India’s top producer of ground granulated blast furnace slag (GGBS), boasting an impressive 84 percent market share, which significantly boosts its earnings. GGBS is a byproduct of the steel and iron industry and is utilised as a supplementary cement-like material.
In FY25, GGBS accounted for 34 percent of the company’s revenue and a whopping 76 percent of its EBITDA. However, this contribution is projected to gradually drop, dropping to 63 percent in FY26, 57 percent in FY27, and 52 percent in FY28.
The brokerage also mentioned that JSW Cement’s plans for capacity expansion will help diversify its regional presence by tapping into the northern market, where profit margins are more favorable. This shift is expected to lessen its reliance on the southern market, reducing its share from 53 percent in FY25 to 41 percent by FY28.
Nevertheless, a capital expenditure of Rs 5,600 crore planned for FY26–28, primarily for its integrated unit in Rajasthan and other grinding projects, is likely to keep the company’s debt levels on the higher side.
JSW Cements reported a revenue of Rs 5,785 crores in FY25, down 4 percent from Rs 6,002 crores in FY24. Coming to its profitability, it reported a net loss of Rs 164 crores in FY25, as compared to a profit of Rs 62 crores in FY24.
Also Read: Water management stock in focus after receiving ₹118 Cr order for O&M of 40 MLD Sewage Treatment Plant
Initial Public Offering
JSW Cements launched its IPO for raising Rs 3,600 crore, comprising a fresh issue of Rs 1,600 crore and an OFS of Rs 2,000 crore. The IPO opened for subscription from August 7 to August 11, 2025, and the company got listed on the stock exchanges on August 14, 2025, at a premium of 4 percent.
Out of Rs 1,600 crore, Rs 800 crore will be used for financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan, Rs 520 crore will be used for fulfilling existing debt obligations, and Rs 226.80 crore will be used for general corporate purposes.
JSW Cement, a proud member of the JSW Group, stands out as one of India’s top and rapidly growing cement manufacturers. They specialize in producing eco-friendly blended cement and GGBS, perfectly aligning with the needs of sustainable construction. With a robust brand reputation, strong in-house execution skills, and strategically placed plants, the company is on a mission to expand its reach across India, aiming to establish a comprehensive national presence.
Written by Satyajeet Mukherjee
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