JSW Infrastructure shares surge 9% as Motilal Oswal names it top pick in ports sector

JSW Infrastructure shares have gained 11 percent this week.

Shares of JSW Infrastructure rallied as much as 9 percent to Rs 260 in the afternoon of February 21, extending gains for a second session in a row after domestic brokerage Motilal Oswal picked the stock as its 'top pick' in the ports sector.

The brokerage has assigned a target price of Rs 330, implying an upside potential of 39 percent from the last closing price of Rs 238 on the National Stock Exchange. JSW Infrastructure shares have gained 11 percent this week.

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India’s port sector handles 95 percent of the country’s export volumes and 70 percent of its export value, with Motilal Oswal projecting strong growth ahead.

The brokerage expects cargo traffic to expand at an annual rate of 3 to 6 percent, with utilisation levels stabilising around 55 percent in the medium term. Container traffic, meanwhile, is forecast to grow between 4 to 7 percent annually over the next five years, driven by rising imports, lower freight costs, and the normalisation of global supply chains.

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"The Indian ports sector is poised for significant growth. Between FY23 and FY28, the country’s ports are projected to add 500-550MTPA of capacity annually, driven by increased handling of petroleum, oil, lubricants (POL), coal, and containerized cargo," the brokerage said in a note.

Analysts are also bullish on Adani Ports and Special Economic Zone (APSEZ), the largest private port operator in India, and have assigned a 'buy' call as continues to gain market share while generating strong cash flows and retaining its leverage position.

"India's extensive coastline and increased investments in inland waterways, coastal shipping, and port privatization initiatives by the government are expected to benefit companies like APSEZ and JSW Infra, enabling them to handle a larger share of volume at Indian ports," Motilal Oswal said.

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India’s ports sector is crucial to its trade ambitions and economic growth. With focused policy support, private investments, and infrastructure development under initiatives such as Sagarmala and the Maritime Amrit Kaal Vision 2047, India is well-positioned to emerge as a global maritime hub.

At about 12:20 pm, shares of the company were trading at Rs 255, higher by 7 percent from the last close on the NSE. Meanwhile, APSEZ shares were trading at Rs 1,086, lower by 2.3 percent from the last close on the NSE.

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