JSW Cement (JSWCEMENT)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach JSW Cement with Graham's caution and Buffett's business lens. At ₹130.02 and a ₹17,557 Cr market cap, the P/E is 23.09, but P/B is 2.66 against book value of ₹48.84, so I am paying well above accounting net worth. The P/E is not demanding if profits are durable, and PEG 0.30 hints at growth, yet cement remains capital-intensive and cyclical. Sales growth of 24.50% and profit growth of 341.24% are striking; the latest quarter showed sales of ₹1,621 Cr and net profit of ₹131 Cr. Five-year revenue CAGR is 14.83%, free cash flow is ₹179 Cr, and a Piotroski F-Score of 8/9 suggests improving operations and accounting quality. Promoter holding of 72.34% aligns interests, and debt/equity of 0.68 is manageable. But the red flags matter: ROE is -46.48%, ROCE is only 4.64%, Altman Z-Score is 1.90, EV/EBITDA is 461.39, and DCF intrinsic value is ₹70.15, far below the market price. Dividend yield is just 0.38%, and the FairStock score is 50/100, confirming a mixed picture. I do not see a wide moat from these figures; cement advantages are regional, logistical, and brand-based, but pricing power is cyclical. JSW Cement looks like a cyclical company with turnaround-like profit momentum, not a margin-of-safety bargain. The latest quarter and F-score are encouraging, but negative ROE, weak ROCE, extreme EV/EBITDA, and DCF below price demand patience. I would wait for sustained ROCE improvement, debt reduction, and cash conversion before paying a premium. Monitor quarterly profitability, debt/equity, EV/EBITDA normalization, and ROCE.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer