DAM Capital has initiated coverage on JSW Infrastructure Limited (JSWIL) with a Buy rating and a target price of ₹400. The brokerage highlights the company’s robust position as India’s second-largest port operator, boasting a cargo handling capacity of 170 million tonnes per annum (mtpa) and an impressive return on invested capital (ROIC) of 19%. Additionally, JSWIL maintains a net debt-free balance sheet as of September 2024, a rarity in India’s infrastructure sector.
JSWIL’s growth prospects are anchored in three key areas: leveraging robust cargo visibility from group companies like JSW Steel, securing bids under the government-driven public-private partnership (PPP) model for major ports, and pursuing value-accretive acquisitions. DAM Capital believes the recent acquisition of Navkar Corporation signals a transformative shift in JSWIL’s business model, offering diversification and enhanced value creation.
The brokerage views JSWIL as a compelling investment opportunity, driven by its strategic initiatives and strong fundamentals in India’s growing port infrastructure space.
