– Anand Rathi: Valuation at 36.7x post-IPO EV/EBITDA. Aggressive pricing.– Long-term Potential: Focus on GGBS product line and growing market share.
Sustainability and Green Cement Focus
– Eco-Friendly Cement: JSW Cement leads in producing GGBS and Portland Slag Cement (PSC).– Green Infrastructure Commitment: Aligning with India’s decarbonization goals.
Business Model and Growth Plans
– Expansion Plans: Aim to increase capacity to 60 MTPA by FY30.– Growth Drivers: PM Gati Shakti, Smart Cities, Housing for All initiatives.
Challenges Ahead
– Competition: Faces stiff competition from industry giants like UltraTech and Ambuja.– Geographical Concentration: Revenue still concentrated in southern and western India.
Risks to Watch
– Regulatory Risks: Changes in mining and environmental policies could disrupt operations.– Cyclicality: Dependent on construction and real estate cycles, vulnerable to economic slowdowns.
Strategic Opportunities
– Green Cement Demand: Premium pricing for eco-friendly cement.– Untapped Markets: Expansion in high-growth regions like Northeast India.
Use of IPO Funds
– Growth Investments: Rs 800 crore for a new plant in Rajasthan.– Debt Repayment: Rs 520 crore to improve leverage.– General Corporate Purposes: Sustainability and operational expansion.