Synopsis

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.

JSW Cement gains as brokerage turns bullish on the stock.

JSW Cement shares were in focus on Monday after brokerage firm Motilal Oswal Financial Services upgraded its rating on the cement maker to ‘Buy’ from ‘Neutral’, while retaining a target price of Rs 146 per share.

The stock gained nearly 2% during the session, touching an intraday high of Rs 119.75 on the BSE.

In its latest research report, Motilal Oswal said JSW Cement is positioned for sustained medium-term growth, supported by strong volume momentum, its entry into North India and an improving cost structure.

The brokerage expects the stabilisation of the company’s North India plant, along with internal cost-efficiency initiatives covering alternative fuels and raw materials (AFR), renewable power and logistics, to help lower operating costs and support margins.

“North ramp-up strengthens growth outlook,” the brokerage said, highlighting the potential for stronger volumes and efficiency gains to drive a re-rating in the stock.

According to Motilal Oswal, industry cement volumes grew around 10-12% year-on-year during July-August 2026. JSW Cement’s like-for-like volume growth was broadly in line with the industry.

However, including the contribution from its North India plant, the company’s overall volume growth stood at an estimated 23-25% YoY during July-August.

The brokerage expects volume growth to remain strong in September, helped by a favourable base.

Motilal Oswal expects fuel costs to remain broadly stable or increase marginally in the second quarter of FY27, supported by the company’s low-cost inventory.

JSW Cement’s approximately 40% GGBS mix also provides relatively lower exposure to fuel-cost inflation, helping cushion near-term margin pressures.

At the North India plant, variable costs per tonne are expected to decline over the next six months as OLBC, AFR and WHRS operations become fully operational, the brokerage said.

Motilal Oswal estimates JSW Cement’s revenue, EBITDA and profit after tax to grow at a compound annual growth rate (CAGR) of approximately 20%, 20% and 15%, respectively, over FY26-FY28.

The brokerage noted that JSW Cement is transitioning from a predominantly South India- and GGBS-led business into a more diversified, integrated and geographically balanced cement company.

At the current market price, the stock trades at around 12x FY28E EV/EBITDA, compared with 14x FY28E EV/EBITDA at its listing price. Based on a 14x FY28E EV/EBITDA valuation, Motilal Oswal has arrived at a target price of Rs 146 and upgraded its rating on JSW Cement to ‘Buy’ from ‘Neutral’.

Disclaimer: This article has been written by Ritesh Presswala, who is not a SEBI-registered Research Analyst or an Investment Adviser. Ritesh Presswala and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

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