Shares of this mid-cap port company hits 10 percent upper circuit after its Board approved the acquisition of Marine Oil Terminal Corporation for a cash transaction of USD 187 million.
With a market capitalization of Rs. 36,036 crores, the shares of JSW Infrastructure Ltd opened its Monday trading session on a positive note at Rs. 179 level. The share went to hit 52 week high of Rs. 188 making a gain of around 10 percent. The share is currently trading at Rs.188.55 apiece.
Such a bullish sentiment was observed after the company, in an exchange filing, mentioned that the company’s Board of Directors has approved the acquisition of ‘Marine Oil Terminal Corporation’ (A company incorporated in Marshall Island) for a cash transaction worth USD 187 million along with its Fujairah Branch.
The Company has a vision to expand its cargo handling capacity and cargo volume in all types of cargoes including liquid & container. Considering the same, the acquisition would help the Company to achieve its growth & expand its footprint in liquid cargo.
Along with this, the Board of Directors of the Company has considered and approved the purchase of a Container Train Operator Licence/Concession (‘CTO license’) from Sical Multimodal and Rail Transport Limited. This will help to expand its footprint in the logistics business and participate in the Container Train Operations Business.
Digging into the financial results recently announced, the revenues marginally decreased by 3 percent from Rs. 878 crores during Q1 FY24 to Rs. 848 in Q2 FY24. Furthermore, the net profit slipped by 20 percent from Rs. 322 crores to Rs. 256 crores keeping the timeframe the same.
Comparing these metrics on a YoY basis, the revenue increased by 20 percent from Rs. 662 crores during Q2 FY23 to Rs. 848 crores in Q2 FY24. In addition to this, the net profit zoomed by 85 percent from Rs. 138 crores to Rs. 256 crores during the same time horizon.
Coming on to important ratios, the return on equity (RoE) was reported at 20.63 percent during FY 21-22 and the return on capital employed (RoCE) was recorded at 17.68 percent during the same period.
According to the latest shareholding pattern, Promoters of the company have an 85.61 percent stake in the company, the Public or Retail Investors have 6.61 percent shares, FIIs have picked a 3.64 percent stake in the company and the remaining 4.14 percent is with the DIIs.
Headquartered in Mumbai, JSW Infrastructure Ltd provides maritime-related services including, cargo handling, storage solutions, logistics services, and other value-added services to our customers, and is evolving into an end-to-end logistics solutions provider. The company develops and operates ports and port terminals under Port Concessions.
Written By Vaibhav Patil
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