Investec initiates Buy rating on JSW Infra, predicts 15% upside on strong growth prospects
Investec has initiated coverage on JSW Infra with a 'Buy' rating and a target price of Rs 370, indicating a 15% upside from its previous closing price of Rs 321.
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.
Also Read:Reliance Power shares rally 5% after SECI withdraws debarment notice
Stock Trading
Ichimoku Trading Unlocked: Expert Analysis and Strategy
By — Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert
Stock Trading
Advanced Strategies in Stock Market Mastery
By — CA Raj K Agrawal, Chartered Accountant
Stock Trading
Futures
