JSW Cement Q2 Review: Motilal Oswal Maintains 'Neutral' Stance; Trims Target Price — Check Details

JSW Cement’s variable cost/tonne is significantly lower than that of peers given the higher share of GGBS in its overall production (+40%). The company has achieved cost savings of Rs 200/tonne in H1 and expects another Rs 200/tonne of cost savings in H2, led by increasing green power/AFR share, logistics optimization and positive operating leverage..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.JSW Cement Ltd. reported strong earnings in Q2 FY26, led by robust volume growth and improved operating performance. Weak cement realization remains a near-term challenge. The company’s variable cost/tonne is significantly lower than that of peers given the higher share of ground granulated blast furnace slag in its overall production (+40%). The company has achieved cost savings of Rs 200/tonne in H1 and expects another Rs 200/t of cost savings in H2, led by increasing green power/AFR share, logistics optimization and positive operating leverage.Management reiterated its long-term capacity target of ~42 mtpa (~34 mtpa by CY28) vs ~22 mtpa currently. We estimate a CAGR of ~18%/31% in revenue/Ebitda over FY25-28, driven by higher sales volume, pricing improvement and cost efficiency. Ebitda/tonne is estimated to be Rs 919/Rs 957/Rs 1,001 in FY26/FY27/FY28 vs Rs 699 in FY25. .We estimate debt to remain elevated due to higher capex of Rs 56 billion over FY25-28E. Net debt is estimated to be Rs 57.2 billion in FY28E vs Rs 32.3 billion as of Sep’25. Net debt-to-Ebitda ratio is estimated at similar levels of 3.0x by FY28E. We value JSW Cement at 13x (earlier at 14x) Sep’27E EV/Ebitda to arrive at our revised target price of Rs 138 (earlier Rs 150). Maintain Neutral..Click on the attachment to read the full report:.Emami Q2 Review: Nirmal Bang Retains 'Hold' Rating On Weaker Than Expected Results— Check Trimmed Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JSW Cement Q2 Review: Motilal Oswal Maintains 'Neutral' Stance; Trims Target Price — Check Details

Motilal Oswal retains 'Neutral' stance on JSW Cement citing positive cement demand outlook.

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