Shares of JSW Infrastructure soared as much as 10 percent on October 29 after the company reported an impressive set of earnings for the July-September quarter. The company's net profit surged 46 percent on year to Rs 372 crore in Q2, up from Rs 254.4 crore in the year ago period.
At 11.06 am, shares of JSW Infrastructure were trading at Rs 311.75 on the NSE. The strong quarterly show also triggered heavy trading volumes in the counter. As much as 88 lakh shares already changed hands so far, higher than the one month daily traded average of 23 lakh shares.
Follow our market blog to catch all the live action
Revenue from operations climbed 18 percent to Rs 1,001.4 crore, up from Rs 848.3 crore in Q2 of the previous fiscal. Operational performance also significantly improved as EBITDA margin swelled up to 67.5 percent in the quarter gone by, as against 53.8 percent in the corresponding period of the previous fiscal.
In this quarter, JSW Infrastructure managed cargo volumes of 27.5 million tonnes (MT), marking a 16 percent increase over last year. This growth was fueled by higher capacity utilisation at the coal terminals in Mangalore, Paradip, and Ennore, along with contributions from recent acquisitions, including PNP and a liquid storage terminal in the UAE.
Meanwhile, third-party volume recorded even stronger growth, rising 48 percent year-on-year, with third-party cargo accounting for 46 percent of total volumes, up from 36 percent a year ago.
In addition, JSW Infrastructure also expects to close FY25 with 10 percent volume growth, slightly narrowing its earlier guidance of 10-12 percent. With its robust balance sheet, JSW Infrastructure also plans to drive both organic and inorganic growth, enhance its market presence, and expand its capacity to 400 MMT by 2030, up from the current 170 MMT.
Brokerage firm MOFSL believes that on the back of stable growth drivers at JSW Infrastructure’s existing ports and terminals, an increased share of third-party customers, steady cargo volumes from JSW Group companies, and a growing portfolio, the company is positioned to solidify its market dominance. This according to MOFSL, is expected to yield a 14 percent volume CAGR over FY24-27, driving a 21 percent CAGR in revenue and a 23 percent CAGR in EBITDA for the period. Banked on this, MOFSL also reiterated its 'buy' rating on JSW Infra with a target price of Rs 350.
Nuvama Institutional Equities also feels that JSW Infrastructure is set for strong long-term growth, driven by favorable macro tailwinds, including a projected 4x capacity increase over the next 25 years. "This growth will be supported by organic expansion—primarily through group cargo growth from JSW Steel—and inorganic growth in the ports and logistics sectors," Nuvama wrote in a note.
Accordingly, the brokerage also retained its 'buy' call on the stock with a price target of Rs 390.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
