Investec has initiated coverage on JSW Infrastructure with a ‘Buy’ rating and a target price of ₹370, citing the company’s strong growth trajectory and strategic advantages. JSW Infra, with its network of major and non-major ports along India’s West and East coasts, is projected to deliver over 20% CAGR in revenue and EBITDA between FY24 and FY30, driven by increasing third-party cargo volumes at its new terminals until FY27 and robust growth from JSW Group’s traffic thereafter.
Investec highlights several factors supporting this bullish outlook:
- Port Privatisation Opportunities: The Indian government’s aggressive port privatisation targets align well with JSW Infra’s management strategy to seize new concessions opportunistically.
- Strong Balance Sheet: The company’s financial position provides significant room for further expansion, enhancing its competitive edge.
- Long Concession Period: JSW Infra benefits from longer residual concession periods compared to peers, offering greater stability and growth visibility.
Moreover, JSW Infra’s valuation multiples for FY27 may appear rich at first glance but are justified by its long-term growth prospects, particularly post-FY27 when expansions by JSW Group companies are expected to take full effect.
Recent Developments
The port sector in India is witnessing increasing private participation, with significant investments directed toward capacity expansion and modernisation. JSW Infra recently reported the successful operationalisation of its Paradip East Quay terminal, further strengthening its East Coast portfolio. With increasing global trade and domestic industrial activity, JSW Infra is well-positioned to leverage these tailwinds, reinforcing Investec’s optimistic outlook.
