Shares of JSW Cement could not sustain early gains on listing day, and closed moderately lower on August 14, likely due to higher valuations of the company, said experts.
The stock opened higher at Rs 153.5 on the National Stock Exchange, rising 4.4 percent over the issue price and touched an intraday high of Rs 154.77 and low of 145.05 in early trade, followed by a rangebound session till close. The stock ended down 0.63 percent with volumes of 10.5 crore shares, while on the BSE it saw a volume of 1.11 crore shares.
The market capitalisation of JSW Cement was Rs 19,912 crore at the end of the day. "The stock falling below its issue price is indicating that the IPO may already be fully valued, though long-term growth prospects remain strong," Gaurav Garg, Analyst at Lemonn Markets Desk said.
Gaurav Garg said that while short-term gains appear limited, the company has established itself as one of India’s fastest-growing and most sustainability-focused cement producers.
The Sajjan Jindal-led JSW Group company has raised Rs 3,600 crore through its maiden public issue which comprised fresh issuance of shares worth Rs 1,600 and an offer-for-sale of Rs 2,000 crore worth shares.
JSW Cement that had installed grinding capacity of 20.60 MMTPA, and clinker capacity of 6.44 MMTPA as of March 2025 is set to utilise Rs 800 crore of the fresh issue proceeds for establishing a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore for repaying of debt.
The company ranks among the top 10 cement producers in India and is actively expanding its presence across the country through greenfield and brownfield projects, with the aim of doubling its grinding capacity.
The revenue growth and profit after tax have shown inconsistency over the past three years. Being in a growth phase, the company’s high valuation and current losses could lead to short-term volatility in returns, Shivani Nyati, Head of Wealth at Swastika Investmart said, advising that those with a medium-to-long-term perspective may consider holding the stock for future growth.
JSW Cement recorded loss of Rs 163.7 crore in the fiscal 2025, against profit of Rs 62 crore in the previous year. Revenue during the same period fell by 3.6 percent to Rs 5,813 crore, down from Rs 6,028.1 crore.
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