Скачать или смотреть JSW Cement IPO: Cementing a Future or Sinking in Debt? Should You Invest?

JSW Cement Limited is a top-10 Indian cement company and the fastest-growing by capacity and sales volume between Fiscal 2015-2025, also being India's largest Ground Granulated Blast Furnace Slag (GGBS) manufacturer. It utilizes a hybrid manufacturing model with 20.60 MMTPA grinding capacity, focusing on eco-friendly blended cement.

However, the company reported a net loss of Rupees 163.77 crore in Fiscal 2025, leading to negative EPS and Return on Net Worth, primarily due to reduced cement realization, declining Operating EBITDA, and increased finance costs alongside losses from joint ventures and associates. JSW Cement also carries a significant and increasing debt burden, with Net Debt (excluding CCPS) at Rupees 4,203.78 crore and a high Net Debt to Operating EBITDA ratio of 4.86 times in Fiscal 2025.

The upcoming IPO aims to raise Rupees 3,600 crore for new capacity expansion and debt repayment. At an assumed price of Rupees 147 per share, the valuation is considered costly due to its negative profitability (P/E "Not Applicable") and a high Price-to-Book Value of 6.16 times, representing a substantial premium over recent shareholder entry costs. Major risks for investors include this high valuation despite losses, significant industry oversupply from aggressive capacity expansion, and the substantial debt load, compounded by loss-making subsidiaries. While JSW Cement plans to nearly double its capacity to 41.85 MMTPA and use IPO funds for debt reduction, its future financial stability largely depends on successful execution, improved cement realization, and effective cost management