Midwest Shares In Focus After Motilal Oswal Initiates Coverage
Mining and materials player Midwest Ltd. shares are in focus today. Brokerage major Motilal Oswal has initiated coverage on the stock with a ‘Buy’ rating, at a target price of Rs 2,000.
The bullish coverage note cites the company’s strong positioning in the black granite market and emerging new growth avenues. Midwest, a prominent player in India’s dimensional stone space, has carved a niche as the country’s largest producer and exporter of Black Galaxy and Absolute Black granite.
Strong Positioning in Black Granite Market
MOSL observes that granite remains the bedrock of Midwest’s steady growth, propelled by sustained global demand and operational scalability. This foundation, according to MOSL, supports a stable earnings trajectory and expanding cash flows.
The company accounts for over 64% of Black Galaxy exports and around 16% of domestic production in FY 2025. The company mines over 1.38 million cubic meters of granite annually, backed by a distribution network spanning 17 countries and five continents.
Emerging New Growth Avenues
Looking ahead, MOSL highlights Midwest’s strategic diversification into quartz and beach mineral sands as the next major growth frontier. The company has over 23 million tonnes of quartz resources and plans to ramp up production by 242,000 tonnes per annum.
This is alongside exploration in Sri Lanka for ilmenite, garnet, zircon, and other heavy minerals.
Improvements in Operational Efficiency and Sustainability
The MOSL report also points to Midwest’s improvements in operational efficiency and sustainability — from captive solar power and induction haulage systems to piloting electric dump trucks.
These initiatives are expected to lower fuel costs, reduce downtime, and enhance environmental credentials, thereby boosting operational cash flows (OCF) and reinforcing valuation support.
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Investment Opportunities in the Granite Industry
The granite industry in India is expected to grow significantly in the coming years, driven by increasing demand from the construction and infrastructure sectors. Investors looking to invest in the granite industry can consider granite industry stocks such as Midwest Ltd.
Conclusion
In conclusion, Midwest Ltd. shares are in focus after Motilal Oswal initiates coverage with a ‘Buy’ rating and a target price of Rs 2,000. The company’s strong positioning in the black granite market and emerging new growth avenues make it an attractive investment opportunity for investors looking to invest in the granite industry.
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