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Brokerage firms continue to remain positive on JSW Infrastructure, the second largest port operator in India after Adani Ports, which may make its debut in October 2023. Analysts tracking the stock believe that the company is poised for strong growth in the long term on the back of volume growth, capex plans and healthy financial growth.

JSW Infrastructure reported a 56 per cent YoY rise in net profits to Rs 515.58 crore in the fourth quarter of FY25, while its revenue from operations rose 17 per cent to Rs 1,283.18 crore. Ebitda grew 7 per cent to Rs 730 crore, with margins remaining strong at 53.2 per cent. The port services player's cargo volumes for the quarter stood at 31.2 million tonnes in Q4FY25.

JSW Infra reported a modest miss on Q4FY25 Ebitda, though it is largely offset by lower interest expenses/higher other income. Port volume grew 6 per cent YoY, largely led by Paradip Iron Ore and consolidation of recently won Tuticorin Bulk and JNPA liquid terminals. Port Ebitda rose 7 per cent YoY while Logistics Ebitda at 13 per cent was impacted by one-off provisions in Navkar., said Nuvama Institutional Equities.

"For FY26E, JSW Infra guided for 10 per cent volume growth and a 52 per cent margin in ports, and Logistics’ revenue growth of 180 per cent YoY with a margin of 16-17 per cent. Capacity guidance of 400mnt is intact with most projects on track," it added with a 'buy' and an unchanged target price of Rs 360 on the stock.

Shares of JSW Infrastructure surged 4 per cent during the trading session to Rs 304.90 on Friday, against the previous close at Rs 293.10. However the stock corrected nearly 4.6 per cent from day's high to Rs 290.90, commanding a total market capitalization of little above Rs 62,000 crore. The stock is down nearly 20 per cent from its 52-week high at Rs 361 hit in July 2024.

JSW Infra concluded FY25 with strong growth in cargo volumes, revenue, and profitability, making significant progress toward its goal of achieving 400 MTPA port capacity by FY30, said Motilal Oswal Financial Services. "Boosted by the Navkar Corporation acquisition, the logistics segment is set for substantial growth, targeting Rs 8,000 crore in revenue by FY30," it said.

Backed by a healthy balance sheet and a positive outlook, the company is well-positioned to capitalize on India’s infrastructure development and rising third-party cargo demand, despite global uncertainties, said Motilal Oswal. "We expect JSW Infra to strengthen its market dominance, leading to a 13 per cent volume CAGR over FY 25-27," it added with a 'buy' and target price of Rs 370.

JSW Infra made its Dalal Street debut in October 2023, when the company raised a total of Rs 2,800 crore via IPO, selling its shares for Rs 119 apiece. The stock delivered more than 200 per cent returns to the investors from its listing price but it is still 150 per cent above its IPO price.

JSW Infrastructure long-term strategy remains intact: focus on commissioning port expansion in a timely manner, ramp-up logistics operations with healthy profitability, and explore inorganic, value-accretive opportunities to bolster growth, said Elara Captial. JSW Infra is in a comfortable position to fund capex plans of Rs 39,000 crore up to FY30, it said.

We have assumed expansion being funded by debt but , fresh issue of capital to bring down promoter shareholding to 75 per cent will reduce the quantum of borrowing. We retain our estimates until FY27. We expect a revenue CAGR of 26 per cent, an Ebitda CAGR of 29 per cent and a PAT CAGR of 21 per cent during FY25-28E.," it added with a 'buy' and a target price of Rs 357.