The brokerage highlighted Midwest's position as India’s largest producer and exporter of Black Galaxy granite, backed by a vertically integrated model and 20 operating mines. Strong historical performance, with revenue CAGR of over 21% and EBITDA CAGR above 44% over the past five years, underpins the positive view.
Looking ahead, revenue and EBITDA are expected to grow at a CAGR of 36% and 47%, respectively, over FY25-28, driven by the Quartz and HMS segments, while adjusted PAT is seen rising at a 56% CAGR. Improving cash flows are also expected to reduce net debt-to-EBITDA below 1x. The target price is based on a valuation of 13x FY28 estimated EV/EBITDA.
Midwest (ML) is engaged in the exploration, mining, processing, marketing, distribution, and export of natural stones. The company is a producer and exporter of black galaxy granite, a unique granite variety known for its sparkling golden flakes.
On a consolidated basis, Midwest's net profit rose 86.82% to Rs 27.78 crore while net sales rose 12.38% to Rs 158.69 crore in Q2 September 2025 over Q2 September 2024.
The stock was listed on the exchanges on 24 October 2025, debuting at Rs 1,165.10, a premium of 9.4% to the issue price of Rs 1,065. The stock is currently up 57.93% over its IPO price and 44.37% over its listing price.
Midwest’s IPO was subscribed 87.89 times. The issue opened for bidding on 15 October 2025, and closed on 17 October 2025, with a price band of Rs 1,014 to Rs 1,065 per share.