JSW Cement Ltd.
ISIN: INE718I01012 • Market Cap: —
The 5-Pillar Quality Audit for JSW Cement Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (17.8%), Return on Capital Employed (10.3%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.63 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.3%) and 3Y PAT CAGR (96.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 22.22 vs PEG of — and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 72.0%, backed by 15.2% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 96.1%)
Net earnings have compounded at 96.1% annualized, demonstrating operating leverage.
Consistent Market Standing (Small Cap)
Established player in the Construction Materials sector with an overall fundamental quality score of 68/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 10.3%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 4.3%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking JSWCEMENT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Materials Sector Peer Comparison
Compare JSWCEMENT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| JSW Cement Ltd. (JSWCEMENT)Current | 68/100 | — | 22.22 | 10.3% | 0.63 | — |
| UltraTech Cement Ltd. (ULTRACEMCO) | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | View |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Ambuja Cements Ltd. (AMBUJACEM) | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | View |
| Shree Cement Ltd. (SHREECEM) | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
Frequently Asked Questions: JSW Cement Ltd.
Q:What is the 5-Pillar Fundamental Score for JSW Cement Ltd. (JSWCEMENT)?
JSW Cement Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (50/100), Financial Health (69/100), Growth (70/100), Valuation (80/100), and Ownership Quality (82/100).
Q:Is JSWCEMENT fundamentally strong for long-term investment?
JSWCEMENT currently holds a moderate quality rating of 68/100. While it operates in the Construction Materials sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does JSWCEMENT pass the Coffee Can Investing filter?
No. JSWCEMENT does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does JSWCEMENT compare against other Construction Materials peers?
Within India's Construction Materials sector, JSWCEMENT trades at a P/E of 22.22 and generates an ROCE of 10.3%. Compare its 5-Pillar score of 68/100 against top sector peers like UltraTech Cement Ltd. (69/100), Grasim Industries Ltd. (60/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.