Kotak Institutional Equities has upgraded JSW Infrastructure to reduce from sell, assigning a revised target price of ₹270 per share, after recent management interactions suggested the company may increasingly leverage the broader JSW Group ecosystem to drive returns on planned growth investments over the next five years. The brokerage noted that while concerns remain, the company’s performance at the strategically important Jaigarh port provides early signs of improvement, supported by refined pricing strategies and targeted investments aimed at regaining market share across Maharashtra’s cargo corridors.
Kotak highlighted that JSW Infra’s ability to integrate group synergies—particularly in captive cargo sourcing and multi-modal logistics—strengthens visibility on medium-term throughput. However, the brokerage cautioned that despite budding green shoots, the key challenge lies in sustaining this momentum over an extended period. The structural question, according to Kotak, is whether growth can maintain consistency once the immediate impact of group support and tactical initiatives moderates.
The brokerage further added that although the recent correction in the stock price has narrowed valuation excesses, it still does not offer a deeply attractive entry point. Kotak believes investors should wait for clearer evidence of durable volume-led growth and stronger utilisation across its operational assets before reassessing the long-term investment case.
Disclaimer: The views and recommendations above are those of Kotak Institutional Equities. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
