JSW Cement shares gain 2% after Motilal Oswal upgrades stock to Buy. Check target price
JSW Cement shares gained nearly 2% after Motilal Oswal upgraded the stock to Buy from Neutral, citing strong volume growth, North India expansion, cost efficiencies and an improving medium-term growth outlook.
On Monday, Motilal Oswal Financial Services upgraded JSW Cement's stock rating to 'Buy' from 'Neutral' and maintained a target price of Rs 146 per share. The stock experienced a 2% increase, reaching an intraday high of Rs 119.75 on the BSE. JSW Cement is projected to experience sustained medium-term growth due to strong volume momentum, entry into North India, and improving cost structure.
The brokerage expects stabilisation of North India plants, internal cost-efficiency initiatives, and renewable power and logistics improvements to lower operating costs and support margins. JSW Cement's volume growth is anticipated to remain strong, with industry volumes growing 10-12% YoY and the company's overall volume growth estimated at 23-25% YoY.
The brokerage projects revenue, EBITDA, and profit after tax to grow at 20%, 20%, and 15% CAGR, respectively, over FY26-FY28. At the current market price, the stock trades at 12x FY28E EV/EBITDA, compared to 14x FY28E EV/EBITDA at its listing price.
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