Hold JSW Infrastructure: target of Rs 326: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Subdued cargo volumes: JSW Infrastructure's cargo volumes have been flat, with a 4% decline in high-yielding ports volume, leading to margin pressure.
  • Logistics expansion: The company is expanding its rail rakes fleet and has guided for EBITDA of INR 4bn for the logistics segment in FY27.
  • Capex plans: JSWIL has incurred capex of INR 15bn in Q2FY27 and has committed INR 60bn for various projects.
  • Execution risks: Delays in construction of new ports, land acquisition, and capacity addition at group steel plants pose risks.

Thesis Validation Checklist

  • Monitor cargo volume growth, particularly at high-yielding ports.
  • Track the progress of logistics expansion and its impact on EBITDA margins.
  • Keep an eye on capex plans and execution risks, including delays in project completion.
  • Watch for any changes in the regulatory environment or industry trends that may impact JSWIL's operations.