Investec expects JSW Infra to achieve a 20%+ revenue and EBITDA CAGR over FY24-30. The growth is expected to be driven by third-party cargo at new terminals and strong growth in JSW Group traffic from FY27E onwards. The firm also sees significant potential for new concessions, fueled by the Indian government’s aggressive port privatization targets, the management’s opportunistic approach, and a robust balance sheet.
The brokerage highlights JSW Infra’s long residual concession life and strong growth visibility, which it believes justifies the company’s premium valuations. Following the announcement, JSW Infra’s stock rose by 4%.
While JSW Infra’s FY27E valuation multiples appear rich, Investec justifies this premium due to the company’s significantly longer concession periods and growth supported by expansions planned by JSW Group, particularly post-FY27E. As a result, the firm has assigned an 18x multiple to FY30E EBITDA and arrived at a target price of Rs 370 per share, initiating coverage with a ‘Buy’ rating.
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Meanwhile, in today’s trade JSW infra shares surged 3.7% to the day’s high of Rs 333.8 on the BSE.Technically, the stock’s relative strength index (RSI) is at 60.8. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at -2.0, which is above its center and signal line, this is a bullish indicator.The stock is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs) while trading above SMAs.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)
