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Motilal Oswal Report
JSW Infrastructure Ltd. has been India’s fastest-growing port-related infrastructure company in terms of installed cargo handling capacity over FY21-23.
JSW Infra was set up in 2004 to cater to the logistics and supply chain for JSW Steel and other group companies. In FY19, it made investments to be able to serve third-party customers too. In FY24, the third-party business increased to 40% of cargo handled (50% in Q1 FY25) from 33% in FY23.
Currently, its 10 port/terminal concessions are well connected to the industrial hinterlands of Maharashtra, Goa, Odisha, Tamil Nadu, Andhra Pradesh, and Karnataka.
JSW Infra has a robust pipeline for constructing new ports and terminals, with a focus on delivering comprehensive logistics services. The acquisition of Navkar Corporation marks the initial step towards offering pan-India logistics services, including last-mile solutions. It has also approved acquiring a slurry pipeline project from JSW Utkal Steel for Rs 17 billion, enhancing connectivity for the Jatadhar Port in Odisha.
The project is under development and is likely to materially contribute to revenue from FY28.
JSW Infra is pursuing both organic and inorganic growth opportunities, thereby bolstering its market footprint. We estimate a volume/revenue/ Ebitda/adjusted profit after tax compound annual growth rate of 15%/22%/26%/28% over FY24-26.
Reiterate Buy with a target price of Rs 390 (based on 25 times FY26E EV/Ebitda).
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