Buy Midwest; target of Rs 2000: Motilal Oswal

Motilal Oswal is bullish on Midwest recommended buy rating on the stock with a target price of Rs 2000 in its research report dated December 23, 2025.

Broker Research

December 26, 2025 / 12:12 IST

Buy

Motilal Oswal's research report on Midwest

Midwest Ltd. (MIDWESTL) is India’s largest producer and exporter of premium Black Galaxy Granite. It holds over 60% of India’s export market share and is a leading player in Absolute Black Granite. The company is vertically integrated across the granite supply chain, operating 20 mines, and has generated ~INR6.3b in revenue during FY25, with a CAGR exceeding 21% over the past five years. MIDWESTL boasts a best-in-class EBITDA margin of 27.4%, with a CAGR of more than 44% during the same period, outperforming its granite industry peers. Management has a multi-pronged growth strategy focused on leveraging the company’s leadership in Black Galaxy and Absolute Black granite while diversifying into highgrowth sectors such as quartz grit and powder and beach-sand heavy minerals. The company’s granite (core operations) volumes are projected to scale up to ~150,000 CBM by FY28 through new mine- and cluster-based expansions, ensuring steady and sustained earnings growth, with revenue and EBIT likely to clock a CAGR of ~12% each over FY25-28E. The primary opportunity lies in the quartz processing plants, which require a capex of ~INR1.3b in Phase II to reach a capacity of about 600 ktpa by FY27E vs. the current 300 ktpa. This expansion aligns seamlessly with domestic demand, which is poised to record a CAGR of ~25%. Additionally, the company is foraying into the mining (having obtained four mines in Sri Lanka) and processing of heavy mineral sands (HMS), primarily used as feedstock for Titanium Dioxide.

Outlook

We initiate coverage on MIDWESTL with a BUY rating. We value the company at 13x FY28E EV/EBITDA to arrive at our TP of INR2,000.

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