JSW Cement IPO Listing: The JSW Group-backed cement giant, JSW Cement, has listed on the BSE and NSE at a premium of 4% and 4.4%, respectively. However, despite market sentiment being positive, JSW Cement could not sustain its gains and is currently trading lower. Experts like the stock for long-term growth.
JSW Cement Share Price BSE:
On BSE, JSW Cement stock is listed at Rs 153, which is 4% premium from its IPO issue price of Rs 147. In the early trade, the stock also touched a 52-week high and low of Rs 154.70 apiece and Rs 145.05 apiece.
At present, the stock price is near its 52-week low to trade at Rs 146.50 apiece, down by 0.34% from the IPO issue price, and lower by 4.25% from the listing price. Its current market cap is around Rs 19,973.30 crore.
JSW Cement IPO Share Price NSE:
The IPO opened at Rs 153.50 apiece on NSE, a premium of 4.4% from the IPO price of Rs 147. The stock's 52-week high and low are at Rs 154.77 apiece and Rs 145.05 apiece, respectively.
At the time of writing, JSW Cement stock traded at Rs 146.40 apiece on BSE, down by 4.63% from the listing price, and lower by 0.8% from the IPO. Its market cap is at Rs 19,871.04 crore on NSE.
What Should Investors Do?
"The stock slipped below its issue price, indicating that the IPO may already be fully valued. While short-term gains appear limited, the company has established itself as one of India's fastest-growing and most sustainability-focused cement producers," said Gaurav Garg, Lemonn Markets Desk.
He further said, "With a strong commitment to green infrastructure, it leads in eco-friendly products such as Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS), aligning closely with India's decarbonization goals. Though long-term growth prospects remain strong, current valuations suggest the IPO is fairly priced."
Here are key risks and strengths of JSW Cement, as per Choice Broking:
Key competitive strengths:
- Among the top three fastest growing cement manufacturing companies in India in terms of increase in installed grinding capacity and sales volume.
- India's largest manufacturer of GGBS and have a proven track record of scaling up this business.
- Strategically located plants that are well-connected to raw material sources and key consumption markets.
- Lowest carbon dioxide emission intensity among peer cement manufacturing companies in India and the top global cement manufacturing companies.
- Extensive sales and distribution network in India and focus on strong brand.
Key Risk and concerns:
- General slowdown in the global economic activities - Reliance on JSW Steel Group for key raw materials. - Risk of failure to maintain or increase the utilisation levels of plants - Business is exposed to seasonal and cyclical demand fluctuations - Risk of exchange rate fluctuation - Competition
JSW Cement launched its IPO from August 7th to August 11th, at a price band of Rs 139 to Rs 147. The issue price of the IPO will be Rs 147. On the last day of the IPO, JSW Cement bagged an oversubscription of 7.77x.
About JSW Cement:
JSW Cement Ltd. (JSW), is a part of the JSW Group, a multinational conglomerate with a portfolio of diversified businesses across various sectors such as steel, energy, maritime, infrastructure, defence, business-to-business e-commerce, realty, paints, sports and venture capital.
The company resources key raw materials such as blast furnace slag from JSW Steel Limited and power from JSW Energy Limited for its operations. As part of the JSW Group, the company benefits from synergies with the long established "JSW" brand.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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