Buy JSW Infrastructure; target of Rs 400: Motilal Oswal

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • JSW Infrastructure's expansion projects, including the development of a 27mtpa greenfield bulk port in Oman, are expected to drive growth.
  • The company's logistics business is expected to scale up, with a target revenue of INR80b and an EBITDA margin of 25% by FY30.
  • The ports segment is expected to benefit from the commissioning of new capacities, with a target revenue of INR80b and an EBITDA of INR43b in FY28.
  • The company's strong balance sheet, with a gross debt of INR72.9b and cash and bank balances of INR89.9b, is expected to support its growth plans.

Thesis Validation Checklist

  • Investors should watch for the commissioning of new expansion projects, including the Oman port and the Kolkata Container Terminal.
  • The growth of the logistics business, including the scaling up of the rail rake fleet, should be monitored.
  • The company's ability to maintain its strong balance sheet and manage its debt levels should be tracked.
  • The impact of geopolitical disruptions on the company's operations, particularly at the Fujairah Liquid Terminal, should be considered.