Synopsis:
JSW Infrastructure announced the acquisition of a 51% stake in South Minerals Port Company SAOC in Oman, further positioning the company to achieve its target to double its target of achieving capacity to 400 MTPA by FY30.
The shares of this leading company engaged in providing maritime-related services, including cargo handling, storage solutions, and logistics services, are in focus after announcing a significant acquisition. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 59,052 crore, the shares of JSW Infrastructure Ltd reached a day’s high of Rs 285.55 per share, up 3 percent from its day’s low price of Rs 277.50 per share. In the last one year, the stock has corrected over 5 percent, underperforming NIFTY 50’s return of 11 percent.
About the News
In a significant strategic move, JSW Infrastructure, through a stock exchange filing, announced that it will buy a 51 percent stake in South Minerals Port Company SAOC in Oman through its step-down subsidiary, JSW Overseas FZE. After the transaction is closed, the port company will formally be a part of the JSW Infra group, thereby consolidating its presence globally.
The newly formed port company will be in charge of building and running a 27 MTPA greenfield port in Oman. The total investment in the project will be US$419 million (Rs 3,716 crore). The construction period is estimated to be around 36 months, with commercial operations scheduled for the first half of 2029. While JSW will be the majority partner and the one to lead the development, Mineral Development Oman (MDO) will be the local partner holding the rest of the shares
But how does it matter?
This acquisition is in line with the target of JSW Infra to increase its cargo-handling capacity from the existing 177 MTPA to 400 MTPA by 2030. Additionally, Oman’s location is advantageous for trade as it lies along major maritime routes and has abundant mineral reserves. Therefore, JSW has a new door to open for mineral exports. Besides the India-Oman economic relationship getting enhanced, the agreement is also worthy of JSW Infra’s International expansion plan in the distant future.
Q2 Highlights
JSW Infrastructure reported a core revenue of Rs 1,266 crore in Q2 FY26, a growth of 26 percent as compared to Rs 1,001 crore in Q2 FY25. Regarding its profitability, it reported a net profit of Rs 369 crore in Q2 FY26, a decline of 1.3 percent as compared to Rs 374 crore in Q2 FY25.
The stock has delivered an ROE and ROCE of 16.24 percent and 13.92 percent respectively, and is currently trading at a high P/E of 37x as compared to its industry average of 28x.
JSW Infrastructure Limited is the second-largest private port operator in India and is a major contributor to the development of green port solutions on the east and west coasts of the country. For the port towns where it is operating, JSW port group is a preferred destination for the handling of various cargo mixes using their mostly mechanized methods.
Furthermore, the company is also actively promoting free trade between the west and east coasts of India through its port facilities in Dubai. Being balanced in its cargo base and having several additional logistics components in the mix, JSW Infra is continually consolidating its leadership position as a full-fledged maritime and logistics solution provider.
Written by Satyajeet Mukherjee
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