Buy JSW Infrastructure; target of Rs 300: Motilal Oswal

Motilal Oswal is bullish on JSW Infrastructure has recommended buy rating on the stock with a target price of Rs 300 in its research report dated May 04, 2024.

Broker Research

May 06, 2024 / 11:56 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on JSW Infrastructure

JSW Infrastructure (JSWINFRA) reported a revenue growth of 20% YoY to INR10.9b (12% above our estimate) in 4QFY24. The company handled cargo volumes of 29.3MMT (+9% YoY) in 4Q. The share of third-party cargo increased to 46% in 4QFY24 from 37% in 4QFY23. EBITDA margin came in at 53% vs. our estimate of 52.7% (up 150bp YoY, up 200bp QoQ). EBITDA grew 23% YoY to INR5.8b, backed by increased cargo volumes. APAT increased 7% YoY to INR3.7b (our est. INR3.2b).

Outlook

Leveraging its robust balance sheet, JSWINFRA seeks to explore organic and inorganic growth opportunities, enhance its presence in the market and increase capacity to 400MMT by 2030 (current capacity is 170MMT). Additionally, the company plans to pursue value-accretive acquisitions of portrelated logistics infrastructure, thereby expanding its portfolio and strengthening its market position. As utilization and volumes continue to ramp up, we expect strong growth to continue. We largely retain our estimates and expect a CAGR of 15%/23%/27%/30% in volume/revenue/EBITDA/PAT over FY24-26E. We reiterate our BUY rating with a TP of INR300 (premised on 18 x FY26E EV /EBITDA).

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