JP Morgan has initiated coverage on India’s ports and logistics sector with a positive outlook, highlighting strong structural growth opportunities supported by rising trade volumes, capacity expansion and improving operational efficiencies.
The brokerage has initiated an overweight rating on Adani Ports with a target price of ₹1,944 per share, and an overweight rating on JSW Infra with a target price of ₹310 per share.
According to JP Morgan, the India ports and logistics sector offers strong long-term growth potential as increasing global trade, infrastructure development and efficiency gains continue to support capacity utilisation and operating leverage.
The brokerage noted that Adani Ports and JSW Infrastructure have already outperformed the Nifty 50 index by around 70 per cent and 68 per cent respectively over the past three years, indicating strong market confidence in the sector’s growth trajectory.
JP Morgan expects Adani Ports to deliver revenue, EBITDA and profit after tax CAGR of about 17 per cent, 15 per cent and 16 per cent respectively between FY25 and FY28.
For JSW Infrastructure, the brokerage projects even stronger growth, with revenue CAGR of around 38 per cent, EBITDA CAGR of 30 per cent and profit CAGR of 21 per cent over FY25–FY28. The company is also targeting port capacity expansion to around 400 million tonnes per annum by FY30.
JP Morgan added that both companies are expanding their logistics and warehousing capabilities, which could further strengthen margins and enhance integrated supply chain offerings over the long term.
Disclaimer: The views and investment tips expressed above are those of the brokerage and do not represent the views of this publication. This article is for informational purposes only and does not constitute investment advice.