Buy JSW Infrastructure; target of Rs 370: Motilal Oswal

Motilal Oswal's research report on JSW Infrastructure

In FY25, JSWINFRA handled 117MMT of cargo (up 9% YoY), supported by higher volumes at terminals in Mangalore, Ennore, and Paradip, along with the commencement of interim operations at JNPA and Tuticorin. Third-party cargo volumes surged 34% YoY to 57MMT, increasing their share in the overall cargo mix to 49% from 40% in FY24. In FY25, the company strategically entered the logistics sector through the acquisition of a 70.37% stake in Navkar Corporation Ltd (NAVKAR) and the Gati Shakti Multi-Modal Cargo Terminal at Arakkonam, laying the groundwork for a pan-India logistics network to deliver integrated, end-to-end supply chain solutions.

Outlook

We estimate a volume/revenue/EBITDA/APAT CAGR of 13%/22%/23%/18% over FY25-27. Reiterate BUY with a TP of INR370 (premised on 23x FY27 EV/EBITDA).