JSW Cement shares made a lackluster debut on the Indian stock exchanges, disappointing investors who were expecting strong listing gains. Despite opening above the issue price, the stock quickly lost momentum and ended lower, as analysts flagged expensive valuations and weak near-term profitability.
JSW Cement Shares Listing Day Performance
On August 14, JSW Cement shares listed at ₹153.5 on the National Stock Exchange (NSE), up 4.4% over the issue price. During the early session, the stock touched an intraday high of ₹154.77 but soon slipped to a low of ₹145.05.
Trading remained rangebound for the rest of the day before the stock closed down by 0.63%. Volumes were heavy, with 10.5 crore shares traded on the NSE and 1.11 crore on the BSE.
By the end of the session, the company’s market capitalisation stood at ₹19,912 crore.
Expert View: Why JSW Cement Shares Struggled
Market experts pointed out that the stock’s weak close highlights stretched valuations.
“The stock falling below its issue price is an indication that the IPO may already be fully valued. While short-term gains look limited, long-term growth prospects remain strong,” said Gaurav Garg, Analyst at Lemonn Markets Desk.
Analysts believe that although the near-term outlook is under pressure, JSW Cement remains one of India’s fastest-growing and most sustainability-focused cement companies.
IPO Details and Fund Utilisation
The Sajjan Jindal-led JSW Group raised ₹3,600 crore through its maiden public issue.
- Fresh Issue: ₹1,600 crore
- Offer for Sale (OFS): ₹2,000 crore
Out of the fresh proceeds, the company plans to invest ₹800 crore in setting up a new integrated cement unit in Nagaur, Rajasthan. Another ₹520 crore will go towards debt repayment.
JSW Cement’s Growth and Capacity Expansion
As of March 2025, JSW Cement had an installed grinding capacity of 20.60 MMTPA and clinker capacity of 6.44 MMTPA. The company has announced aggressive plans to expand its footprint across India through both greenfield and brownfield projects, with a target to double its grinding capacity in the coming years.
Financial Performance: Losses Weigh on Valuation
While the expansion strategy looks promising, recent financial performance has been underwhelming.
- In FY2025, the company posted a loss of ₹163.7 crore, compared to a profit of ₹62 crore in the previous year.
- Revenue also fell 3.6% to ₹5,813 crore, down from ₹6,028.1 crore a year earlier.
Shivani Nyati, Head of Wealth at Swastika Investmart, cautioned:
“JSW Cement shares may face volatility in the short run due to high valuation and current losses. However, investors with a medium-to-long-term perspective can consider holding the stock for future growth.”
Outlook for Investors
Despite the weak listing, analysts remain positive on the company’s long-term story. JSW Cement’s position among the top 10 cement producers in India, focus on sustainability, and aggressive expansion plans make it a strong candidate for long-term growth.
However, in the near term, high valuations and inconsistent earnings could continue to weigh on JSW Cement shares.
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ગુજરાતીમાં વાંચો:- JSW Cement shares IPO Listing: રોકાણકારો માટે મિશ્ર સંકેત
