This Infra stock, part of the JSW Group, engages in providing maritime services, including cargo handling, storage, logistics, and port operations, both in India and globally, is in focus after the company plans to invest Rs. 9000 crore to expand capacity up to 300 MTPA by FY30.
Stock Price Movement
With a market capitalization of Rs. 67,147.55 crore, the shares of JSW Infrastructure Limited closed at Rs. 319.75 per equity share, down nearly 0.96 percent from its previous day’s close price of Rs. 322.85.
Over the past year, the stock has provided impressive returns of more than 30 percent. The stock is currently trading at 11.43 percent below its 52-week high of Rs. 361.
Company Overview
JSW Infrastructure Limited was established in 2006 and offers a range of maritime services such as cargo handling, storage solutions, and logistics. The company specializes in managing port operations, providing efficient infrastructure to support shipping and transportation needs, and ensuring smooth cargo movement for both domestic and international clients.
Cargo Handling Capacity
JSW Infrastructure currently boasts a significant cargo handling capacity of 174 million tonnes per annum (MTPA), with plans to expand this to 300 MTPA by 2030. The company operates ten ports and terminals across India, strategically located along both the East and West coasts, which enhances its operational efficiency and service offerings.
Logistics Expansion
JSW Infrastructure has allocated Rs. 9,000 crores in capital expenditure until FY30 to expand its logistics network, following the Navkar acquisition. The goal is to achieve a 25 percent EBITDA margin on Rs. 8,000 crores in revenue. The strategy focuses on building a pan-India logistics network for last-mile connectivity by utilizing existing assets and exploring cost-effective solutions.
Capacity Guidance
The management of JSW Infrastructure expects steady volume growth, mainly from third-party business, until the completion of the Dolvi steel plant expansion around FY26 or FY27. For FY 25, the company has projected a 10-12 percent volume growth and anticipates maintaining a double-digit growth trend in the coming years.
Target
- Motilal Oswal has maintained a “Buy” rating on JSW Infrastructure Limited and given a target price of Rs. 380, which has an upside potential of 18.82 percent.
- JM Financial has given a “Buy” rating to the company and set a target price of Rs. 390, which has an upside potential of 21.95 percent.
Global Presence
JSW Infrastructure has expanded beyond India, setting up a liquid tank storage facility in Fujairah, UAE, with a capacity of 465,000 cubic meters. The company also operates two dry bulk terminals in Fujairah and Dibba, strengthening its global presence and enhancing its maritime services internationally.
Recent quarter results
JSW Infrastructure Limited’s revenue has increased from Rs. 940 crore in Q3 FY24 to Rs. 1,182 crore in Q3 FY25, which has grown by 25.74 percent. The net profit has also grown by 32.28 percent from Rs. 254 crore in Q3 FY24 to Rs. 336 crore in Q3 FY25.
JSW Infrastructure Limited’s revenue and net profit have grown at a CAGR of 26.91 percent and 42.58 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 16.4 percent and 19 percent, respectively. JSW Infrastructure Limited has an earnings per share (EPS) of Rs. 6.30, and its debt-to-equity ratio is 0.56x.
Written By – Nikhil Naik
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