Midwest Ltd., the top Indian exporter of premium Black Galaxy granite, just received a fresh buy rating from Motilal Oswal, with a target price of INR 2,000.
Company Snapshot
Midwest Ltd. (MIDWESTL) produces and exports Black Galaxy and Absolute Black granite, holding over 60% of India’s export market.
Growth Strategy
Management plans to boost granite volumes to about 150,000 cubic meters by FY28 and expand into high‑growth areas such as quartz grit, quartz powder, and heavy‑mineral sands.
- New mines and cluster expansions to raise granite output.
- Phase II quartz plant capex of ~INR 1.3 billion to double capacity to 600 ktpa by FY27.
- Acquisition of four mines in Sri Lanka for heavy‑mineral sand processing.
Financial Highlights
- FY25 revenue ~INR 6.3 billion, with a 21% CAGR over five years.
- EBITDA margin 27.4%, growing at a 44% CAGR.
- Projected FY25‑28 revenue and EBIT CAGR around 12%.
Analyst Opinion
Motilal Oswal initiates coverage with a BUY call, valuing the firm at 13× FY28E EV/EBITDA and setting a price target of INR 2,000 per share.
Key Takeaways for Investors
- Strong market leadership in premium granite exports.
- Diversification into fast‑growing quartz and heavy‑mineral segments.
- Robust profitability and expanding margins.
- Buy rating suggests upside potential if growth plans materialize.
Disclaimer
These insights are for informational purposes only and not a recommendation to buy or sell. Do your own research and consider your risk tolerance before making any investment decisions.