Buy JSW Infrastructure, target price Rs 390: JM Financial

JM Financial has a buy call on JSW Infrastructure Ltd. with a target price of Rs 390 over 12 months. The current market price of JSW Infrastructure Ltd. is Rs 322.85. JSW Infrastructure, incorporated in 2006, is a Small Cap company with a market cap of Rs 67641.05 crore, operating in the Shipping sector.

JSW Infrastructure's key products/revenue segments include Cargo Income for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 1088.19 Crore, down -1.40 % from last quarter Total Income of Rs 1103.69 Crore and up 21.52 % from last year same quarter Total Income of Rs 895.48 Crore. Company has reported net profit after tax of Rs 373.73 Crore in latest quarter.

The company?s top management includes Mr.Sajjan Jindal, Mr.Nirmal Kumar Jain, Mr.Arun Sitaram Maheshwari, Mr.Lalit Chandanmal Singhvi, Mr.Kantilal Narandas Patel, Ms.Ameeta Chatterjee, Mr.Gerard Earnest Paul Da Cunha, Mr.Amitabh Kumar Sharma, Dr.Anoop Kumar Mittal. Company has Shah Gupta & Co. as its auditors. As on 30-09-2024, the company has a total of 210 Crore shares outstanding.


Investment Rationale
JM Financial maintains a BUY with Mar?26 target price of Rs 390, They expect the current valuation multiple of JSWIL to sustain given a) JSWIL?s robust growth, b) new port developments/acquisitions in the medium term, and c) possibility of upward revision in tariff at its major port terminal (new policy allows such revisions, subject to regulatory approvals). The brokerage values JSW Infra on 25x FY27 EV/EBITDA to arrive at Mar?26 target price of Rs 390. Key risks to call - a) Any material downward price revision for group customers, and b) sharp depreciation of the Indian rupee against the US dollar.

Promoter/FII Holdings
Promoters held 85.61 per cent stake in the company as of 30-Sep-2024, while FIIs owned 4.2 per cent, DIIs 2.5 per cent.