Buy JSW Infrastructure; target of Rs 350: Motilal Oswal

Motilal Oswal is bullish on JSW Infrastructure has recommended buy rating on the stock with a target price of Rs 350 in its research report dated January 28, 2025.

Broker Research

January 29, 2025 / 21:36 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on JSW Infrastructure

During 3QFY25, JSW Infrastructure (JSWINFRA) completed the acquisition of a 70.37% share of Navkar Corporation (NAVKAR) through its subsidiary JSW Port Logistics (consolidated effective 11th Oct’24). The 3QFY25 results are not comparable with those of the corresponding periods. Navkar generated a revenue/APAT of INR1.2b/INR11m from 11th Oct’24 to 31st Dec’24.JSWINFRA’s consolidated revenues grew 26% YoY to INR11.8b. During thequarter, the company handled cargo volumes of 29.4m tonnes (+5% YoY).EBITDA grew ~22% YoY to INR5.9b. EBITDA margin was 49.6% and was lower by ~150bp YoY/~240bp QoQ. APAT grew ~43% YoY to INR4.4b (our est. ofINR3.3b). Lower tax outgo drove APAT. The increase in the third-partyvolume was stronger with 31% YoY growth, and the share of third parties inthe overall volumes stood at 49% in 3QFY25 vs. 39% in 3QFY24.

Outlook

We expect JSWINFRA to strengthen its marketdominance, leading to a 14% volume CAGR over FY24-27. This should drive a21% CAGR in revenue and a 23% CAGR in EBITDA over the same period. Wereiterate our BUY rating with a TP of INR350 (based on 23x Sep’26 EV/EBITDA).

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