Buy JSW Infrastructure; target of Rs 380: Prabhudas Lilladher

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • JSW Infrastructure's logistics business is expected to drive growth, with a strong performance from Navkar Corporation and an expanding rail rake fleet.
  • India cargo volumes are growing at 8% YoY, driven by improved capacity utilization at Paradip Coal, Ennore Bulk, and Mangalore Coal terminals.
  • The company is focused on diversifying into containers and liquids, with plans to bid for major port terminals in South India.
  • Management has retained its FY27 EBITDA guidance of INR29.5-30bn, with a long-term target of 300mtpa port capacity by FY28 and 400mtpa by FY30.

Thesis Validation Checklist

  • Investors should watch for continued growth in logistics revenue and margins, as well as progress in expanding the rail rake fleet and increasing capacity utilization at ports.
  • The resumption of Fujairah operations and the ramp-up of BF#3 at JSW Steel are key catalysts for the stock.
  • Any changes to the company's EBITDA guidance or capex plans could impact the investment thesis.
  • Monitoring the company's ability to execute on its plans to diversify into containers and liquids will be important for long-term growth.