During Monday’s trading session, the shares of a part of the JSW Group and India’s second-largest private commercial port operator slumped nearly 3.2 percent to Rs. 258.6 on BSE, after the company’s promoters plan to sell a 14 percent stake to fund Rs. 39,000 crore capex.
With a market cap of Rs. 54,348 crores, at 12:45 p.m., the shares of JSW Infrastructure Limited were trading in the red at Rs. 258.8, down by nearly 3 percent, as compared to its previous closing price of Rs. 266.95.
What’s the news:
According to a few sources, the Sajjan Jindal family plans to reduce its promoter stake in JSW Infrastructure by 14 percent to fund its Rs. 39,000-crore capital expenditure (capex) over the next five year
In addition to its ongoing expansion initiatives, JSW Infra intends to actively pursue privatised terminals and acquire distressed logistics assets through the National Company Law Tribunal (NCLT) process.
Currently holding an 85.61 percent stake, the Jindal family will lower its ownership to below 75 percent to comply with regulations that require a reduction in promoter holdings within three years of a company’s listing.
JSW Infrastructure, which went public in September 2023, is targeting a debt-to-equity ratio of 70:30 to finance its Rs. 39,000-crore capex plan. cover additional equity needs, the company will rely on internal cash accruals.
Lalit Singhvi, Whole-Time Director and CFO of JSW Infra, stated, “Existing cash will be used for equity in the Rs. 39,000-crore expansion, covering 25-30% of the remaining debt.”
The company has allocated Rs. 30,000 crore for port expansions and greenfield projects, along with Rs. 9,000 crore for logistics developmen Major projects include the Rs. 3,000-crore Jatadhar Port, which is expected to be completed by FY28, and the Rs. 4,119-crore Keni Port, set to be finished by FY2
Additionally, a Rs. 4,000-crore slurry pipeline is expected to be completed by April 2027, and Navkar Corp’s logistics network is slated to expand by FY30.
Management Guidance:
The company aims to achieve a top line of Rs. 8,000 crores in its logistics
segment, with a 25 percent EBITDA margin, leading to an industry-leading Return on Capital Employed (ROCE). With a robust balance sheet, it is well-positioned to pursue both organic and inorganic growth opportunities while maintaining healthy leverage ratios.
As part of its future growth strategy, the company plans to enhance its overall cargo-handling capacity to 400 MTPA by 2030 or earlier, up from the current capacity of 174 MTPA.
Financials:
JSW Infra reported a significant growth in revenue from operation experiencing a year-on-year increase of nearly 25.7 percent, rising from Rs. 940 crores in Q3 FY24 to Rs. 1,181.8 crores in Q3 FY25.
Similarly, during the same period, the company’s net profit increased fr Rs. 253.6 crores to Rs. 335.6 crores, representing a growth of around 32.3 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, JSW Infra has a Return on Equity (RoE) 19 percent and a return on capital employed (RoCE) of 16.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.56.
Stock Performance:
The stock has delivered positive returns of nearly 17 percent in one year, but around 17.3 percent of negative returns in the last six months. However, the shares of JSW Infra have given negative returns of about 21.3 percent in the last one month.
About the company:
JSW Infrastructure Limited, a part of the JSW Group and India’s second-largest private commercial port operator, is primarily engaged in the business of developing, operating and maintaining the Ports services, Ports-related infrastructure development activities and development of infrastructure.
The company currently operates 10 port concessions strategically located on the west and east coasts of India, and its international presence includes a Liquid tank storage terminal of 4.65 lakh cubic meters in Fujairah, UAE.
Written by Shivani Singh
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