Midwest Limited has a legacy of more than four decades in the dimensional natural stone (i.e., naturally occurring stones) industry with experience in exploration, development and operation of mines, stone processing and fabrication, sales, distribution and marketing of various types of natural stone. They are engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones. Midwest Limited is India's largest producer and exporter of Black Galaxy Granite (a variety of Granite which is sparkling with flakes of a golden hue), and held a share of approximately 64% of the Indian export market for Black Galaxy Granitein Fiscal 2025, exporting 44,992 cubic meters of Black Galaxy Granite during Fiscal 2025. They are also the largest producer in Absolute Black Granite (a variety known for its remarkable surface finish) in India, both of which have high demand. The Absolute Black Granite production accounted for 15.7% of the overall black granite production in India during Fiscal 2025. Company's existing business activities primarily comprise extracting and processing Dimensional Granite (i.e., Granite that is cut to conform to the specifications in terms of size and shape), particularly the Black Galaxy and Absolute Black varieties ('Natural Stone Segment'). They also manufacture Diamond Wire, which is a precision cutting tool employed in the natural stone and construction industries to size stones and other hard substances with precision in mines and processing / fabrication facilities. During the quarter ended September 30, 2025, company commenced operations in the Quartz processing business through the operationalization of Phase I of the Quartz Processing Plant, located at the APIIC Growth Center (Building Materials Special Economic Zone) at Annangi Village, Prakasam District, Andhra Pradesh, India. Company currently has 16 operational Granite Mines across 6 locations in the states of Telangana and Andhra Pradesh in India producing Granite varieties such as Black Galaxy, Absolute Black, Tan Brown, along with one Granite processing facility in each of the states of Telangana and Andhra Pradesh. In addition to the operational mines, they have also established a resource base comprising 25 locations across Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. A majority of the Granite blocks extracted from the Mines are sold directly to bulk customers from the Mines or stockyards. Only a small fraction are sent to the two mechanized processing facilities in Andhra Pradesh for further processing into cut slabs. The customers, comprising processors and distributors, are located across 17 countries and five continents, with China, Italy and Thailand being the primary export markets. The customers include MP STENEKO AB (based in Sweden); GI-MA STONE SRL (based in Italy); Quanzhou Xingguang Stone Co. Ltd. and the Xiamen Group (based inChina); King Marble and Granite Co. Ltd. (based in Thailand); and Kodeyalam Stones, Anjanee Exports and Anjalee Granites Pvt Ltd (based in India). As per financial performance, Midwest Limited has posted total income / net profits of Rs 522.23 Cr / 54.44 Cr (FY23), Rs 603.33 Cr / Rs 100.32 Cr (FY24), Rs 643.14 Cr / 133.30 Cr (FY25) and Rs 146.46 Cr / 24.38 Cr (Q1 FY26). So as per previous financials data, company has shown good results. Company has an average EPS of Rs 32.28 and average RoNW of 21.37% for last three fiscals. Issue is priced at a P/BV of 6.24 as per NAV of Rs 170.66/- as on 30.06.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 38.39, 28.89 and 39.49 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, DAM Capital Advisors Limited, Intensive Fiscal Services Private Limited and Motilal Oswal Investment Advisors Limited are associated with this IPO, and have handled 58 IPOs in last three fiscal years. ( As on 10 ) As per financials, Midwest Limited has shown good results, RoNW is 22.11% and P/E is 38.39, 28.89 and 39.49 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced when compared with peers. Company is engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones. 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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