JSW Infra shares rise 3% as Nuvama initiates with 'buy' on strong prospects

JSW Infra shares have rallied 53 percent since the start of the year.

Shares of JSW Infrastructure were off to a positive start on the bourses on October 15, rising 3 percent to Rs 329 after Nuvama Institutional Equities initiated coverage with a 'buy' call, emphasising bullishness citing multiple levers for growth.

With a price target of Rs 390, the domestic brokerage forecasts an upside potential of 22 percent from the previous close of Rs 319 on the NSE. JSW Infra shares have rallied 53 percent since the start of the year.

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Nuvama says that JSW Infra as the second-largest private port operator in a steadily growing industry, stands to benefit from strong parentage and is expected to maintain robust growth in third-party cargo. Additionally, JSW Infrastructure is evolving from a port operator into a full-fledged logistics utility company, with its strong financial performance likely to continue.

"We believe this opens up a vast opportunity in an extremely fragmented market and can potentially add 5–10 percent to its revenue or EBITDA over the long term. JSW Infra has significant muscle to ride this opportunity given its strong balance sheet and high promoter shareholding," Nuvama said in a report dated October 14.

JSW Infrastructure (JSWIL) derives business from group customers, with future growth in JSW group companies expected to boost its volumes. JSW Steel targets a production capacity of 50 million tonnes by FY31, while JSW Energy aims for 10GW by FY25 and 20GW by FY30, up from 7.2GW in FY24. JSW Infra has 10-15-year contracts with JSW Group companies for cargo handling, some with take-or-pay provisions, ensuring long-term cargo and revenue visibility.

At about 9:30 am, shares of the company were trading at Rs 325, higher by 2 percent from the last close on the NSE.

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