Jefferies says 'buy' this newly-listed cement stock, sees 22% potential upside

Shares of newly listed JSW Cement Ltd. can rise 22.4% as per brokerage firm Jefferies' note on Monday, October 6. This is higher than the consensus estimates of price targets, that is projecting a 13.5% upside potential

The brokerage has initiated coverage on JSW Cement with a "buy" rating and a price target of ₹170 per share.

Jefferies said the company is scaled to being among the top 10 cement players. Its capacity and volumes grew at a Compounded Annual Growth Rate (CAGR) between 13% and 17% between financial year 2015-2025.

JSW Cement is positioned well for a profitable scale-up, as it diversifies from being a regional player to becoming a pan-India company.

The brokerage expects JSW Cement's earnings before interest, taxes, depreciation and amortisation (EBITDA) to grow at a 35% CAGR over financial year 2025-2028.

Shares of JSW Cement made their stock market debut on August 14, 2025, listing at a premium of over 4%.

The company raised around ₹3,600 crore via the IPO, where it offered a fresh issue of 1,600 crore and an offer for sale of ₹2,000 crore.

Net proceeds from the IPO were to fund a new integrated cement unit in Nagaur, Rajasthan for ₹800 crore, repay debt of ₹520 crore and for other general corporate purposes.

Four analysts have coverage on JSW Cement, of which two each have a "buy" and "hold" rating on the stock.

Shares of JSW Cement are trading 1% higher on Monday at ₹140.1. The stock is still below its IPO price of ₹147 per share.

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