Accumulate JSW Infrastructure; target of Rs 344: Prabhudas Lilladher

Prabhudas Lilladher's research report on JSW Infrastructure

JSWINFRA reported weak Q1FY26 operating performance led by 4.6% cargo volume growth and lower contribution from logistics business. Cargo volumes were affected by lower iron ore volumes at Paradip, Dolvi steel plant maintenance shutdowns, and lower third-party cargo, despite strong coal handling operations at Ennore, PNP and Paradip. Volumes at its largest port, Jaigarh, remained tepid due to the delay in government orders to Jul’25. Port ops revenue per ton grew 2.8% YoY to Rs369 driven by tariff hikes during the quarter. We expect the ramp-up of group steel business in H2 and commissioning of the LPG terminal at JNPT to drive volume growth for the company.

Outlook

We expect JSWINFRA to deliver revenue/EBITDA/PAT CAGR of 23%/25%/20% over FY25–28E. The stock is trading at EV of 20.2x/17.2x FY27E/FY28E EBITDA. Maintain ‘Accumulate’ with TP of Rs344 valuing at 21x EV of Sep’27E EBITDA.