JSW Cement Limited is cement manufacturing company in India. They are among the top 10 cement companies in India in terms of installed capacity and sales volume as of March 31 2025. For the period from Fiscal 2023 to Fiscal 2025, the installed grinding capacity grew at a compound annual growth rate ('CAGR') of 12.42% and sales volume (excluding JSW Cement FZC) grew at a CAGR of 15.05%, which is faster than the industry average CAGR of 6.23% for installed capacity and 8.12% for sales volume during the said period. As of March 31, 2025, company had Installed Grinding Capacity of 20.60 MMTPA consisting of 11.00 MMTPA, 4.50 MMTPA and 5.10 MMTPA in the southern, western and eastern regions of India, respectively. As of March 31, 2025, they had an Installed Clinker Capacity (defined below) of 6.44 MMTPA which includes the Installed Clinker Capacity of JSW Cement FZC. Majority of the capacity has been developed organically. They are currently undertaking greenfield and brownfield expansion plans across India, including in the north and central regions, to increase the Installed Grinding Capacity to 41.85 MMTPA and Installed Clinker Capacity to 13.04 MMTPA, and create a pan-India footprint. Company started the operations in 2009 in the southern region of India through the single grinding unit in Vijayanagar, Karnataka. The product portfolio consists of blended cement (including PSC, PCC and PPC), GGBS, ordinary portland cement ('OPC'), clinker and a range of allied cementitious products such as ready mix concrete ('RMC'), screened slag, construction chemicals and waterproofing compounds. As of March 31, 2025, they operated seven plants in India, which comprise one integrated unit, one clinker unit and five grinding units across the states of Andhra Pradesh (Nandyal plant), Karnataka (Vijayanagar plant), Tamil Nadu (Salem plant), Maharashtra (Dolvi plant), West Bengal (Salboni plant), Odisha (Jajpur plant and the majority owned Shiva Cement Limited clinker unit). JSW Cement FZC also operates one clinker unit in the UAE that supplies clinkerto the Dolvi grinding unit in western India and to third-party customers. To ensure consistent supply of limestone, which is a key raw material for cement production, they have the right to mine across 11 limestone mines in India, with an aggregate limestone residual reserve of 1,089.09 million metric tonnes ('MMT') as of March 31, 2025. Of the limestone mines in India, four limestone mines in India are operational (the JSW Nandyal mine in Andhra Pradesh; two Khatkurbahal mines in Odisha; and the Kolkarhiya mine in Madhya Pradesh). Further, JSW Cement FZC has the right to mine one limestone mine in the UAE with a limestone residual reserve of 193.58 MMT as of March 31, 2025 which is currently operational. Company sells the products through a well-connected distribution network. As of March 31, 2025, they had a network of 4,653 dealers, 8,844 sub-dealers and 158 warehouses. Through the dealers and sub-dealers, they serve the retail demand for the cement and allied cementitious product in the trade channel. As of March 31, 2025, they also had 6,559 direct customers in the non-trade channel comprising builders and institutional customers to whom they supply the products for the construction of housing, infrastructure and commercial projects in India. As per financial performance, JSW Cement Limited has posted total income / net profits of Rs 5,982.21 Cr / 104.04 Cr (FY23), Rs 6,114.59 Cr / Rs 62.01 Cr (FY24) and Rs 5,914.66 Cr / (163.77) Cr (FY25). So as per previous financials data, company has shown zig-zag results. Company has an average EPS of Rs (0.05) and average RoNW of (0.22)% for last three fiscals. Issue is priced at a P/BV of 6.16 as per NAV of Rs 23.85/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 192.64, 323.18 and NA respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited (eight) are associated with this IPO, and have handled 203 IPOs in last three fiscal years. ( As on 06.08.25 ) As per financials, JSW Cement Limited has shown zig-zag results, RoNW is 25.14% and P/E is 192.64, 323.18 and NA respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced. Company is in cement business, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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