1. At a Glance
Welcome to the circus calledPrism Johnson Limited, where cement, tiles, and RMC dance together under one balance sheet, each pretending to be the star. The ₹7,146 crore market cap behemoth closed Q2 FY26 at ₹142 per share, trading at an eyebrow-raising95.3x P/E— which is basically the market saying, “We believe in miracles.” Over the last 3 months, the stock slid-2.9%, making shareholders question whether “building materials” includes rebuilding their confidence.
Despite a13.1% YoY rise in quarterly sales to ₹1,855 crore, PAT barely touched ₹2.81 crore — a profit that could sponsor a decent office renovation, not much else. TheOPM improved to 10.04%, a rare bright spot, whileROCElimped at2.22%andROEstayed in the red at-4%. No dividends, no fireworks, just pure “let’s survive till next quarter” energy.
2. Introduction – A Multi-Material Multi-Drama Company
If you thought diversification reduces risk,Prism Johnsonis here to prove it multiplies confusion. Cement, tiles, RMC, sanitaryware, insurance stakes — the company’s portfolio looks like a hardware store married an insurance broker.
Founded in 1992, Prism has become one of India’s largestintegrated building materialsplayers. But “integrated” seems to mean “everything but profits integrated.” Its operations span across cement (44% of FY23 revenue), H&R Johnson tiles (35%), and ready-mix concrete (21%). Each segment brings something unique — cement brings bulk, tiles bring style, and RMC brings dust.
The company’s latest achievements include a₹50 crore rights issue investmentinRaheja QBE General Insurance, multiple limestone lease wins, and a few dramatic exits — including terminating a24 MW captive wind projectafter disagreements with ReNew. Who needs renewable energy when you have renewable excuses?
Meanwhile, Prism’s promoters — the Raheja family — continue holding a steady74.87% stake, watching from their tiled bathrooms as the company oscillates between hope and hopelessness.
3. Business Model – WTF Do They Even Do?
Prism Johnson’s business model can be summarized as:Make everything a construction site needs, except profits.
A) Prism Cement (44%)– The heart of the company. It operates with a7.8 MTPA capacityin Satna, MP, supplemented by0.82 MTPAfrom grinding units in UP and Bihar. With brands likeChampion,Champion Plus, andDuratech, Prism cement promises strength — and given their ROE, investors sure need it.
B) H&R Johnson (35%)– The company’s tile and sanitaryware arm. With10 tile plants (61 mn m²)andtwo faucet factories (3.6 mn pieces/year), this division adds glamour to Prism’s portfolio. The company recently completed a
1.2 mn m² Morbi expansion, and another5.5 mn m² greenfield projectin West Bengal is on the cards. Clearly, capacity expansion is easier than expanding margins.
C) RMC (21%)– Among India’s top three in ready-mix concrete, operating91 plants across 44 cities. That’s impressive scale — pity it’s not reflected in the share price.
Together, these businesses are supposed to form a synergistic empire of concrete, tiles, and trust. Instead, they’ve built a company that’s structurally diversified but financially fragile — like a fancy bungalow with poor plumbing.
4. Financials Overview
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,855 | 1,640 | 1,922 | 13.1% | -3.5% |
| EBITDA (₹ Cr) | 186 | 46 | 168 | 304% | 10.7% |
| PAT (₹ Cr) | 2.81 | -103.67 | -5.56 | 103% | NA |
| EPS (₹) | 0.06 | -1.78 | 0.05 | 103% | 20% |
Annualised EPS = ₹0.24 → P/E ~ 591x. Even by Indian optimism standards, that’s bold.
Commentary:The good news — they turned a profit. The bad news — it’s smaller than most MSME GST refunds. Operating margins finally touched double digits (10.04%), proving maybe Prism’s cost control measures are working, or maybe cement prices just went up. Either way, champagne (or tile adhesive) might be in order.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s put on our CA hats and try to make sense of this valuation rollercoaster.
Method 1: P/E Based RangeAnnualised EPS = ₹0.24Industry Average P/E ≈ 37.2→Fair Value Range = ₹0.24 × (25–40) = ₹6–₹10 per share(Current CMP ₹142 = 14x the optimistic upper band. Investors clearly love pain.)
Method 2: EV/EBITDAEV = ₹8,578 Cr, EBITDA (TTM) = ₹595 Cr → EV/EBITDA = 14.4xIndustry average ≈ 10x → Fair Value Range = ₹4,000–₹6,000 Cr EV → ₹65–₹100 per share
Method 3: DCF (Simplified)Assuming ₹600 Cr steady EBITDA, 5% growth, 10%
