JSW Infrastructure Ltd. received a ‘Buy’ coverage initiation from Dam Capital with a 30% upside for the stock on robust growth visibility and opportunities with increasing capacity in major ports.
The brokerage has a target price of Rs 400 per share, against the previous close of Rs 314.9 on the NSE. This is the third highest target set for the infra giant, according to the analysts tracked by Bloomberg.
The second largest port operator in India is expected to replicate the success of its ports business model in logistics, analysts at Dam Capital said in a note. This will be done by developing infrastructure for catering to strong group cargo visibility and cross-selling these services to third-party clients, it said.
The company has solidified the backward integration of JSW Group by handling cargo, the brokerage said. “Going ahead, we expect JSW Infra to support the forward integration of JSW Group, by handling the logistics of finished/semi-finished products.”
Dam Capital expects a robust growth visibility for the company with the capacity target of 400 million tons per annum by fiscal 2030.
JSW Infra’s growth in the ports business would be hinged upon a robust group cargo visibility, securing bids at major ports and value accretive acquisitions, Dam Capital said. “We strongly believe that the recent acquisition of Navkar Corp. would mark a tectonic shift in JSWIL’s business model.”
Strong and well-capitalised balance sheet for infra giant will ensure leverage ratios remain under check, the brokerage firm said.
JSW Infra share price rose as much as 2.46% during the day to Rs 316.3 apiece on the NSE. It was trading 2.2% higher at Rs 315.5 apiece, compared to a 0.85% advance in the benchmark Nifty 50 as of 09:24 a.m.
It has risen 42.40% during the last 12 months and has declined by 50.74% on a year-to-date basis. The relative strength index was at 49.
Eleven out of the 14 analysts tracking the company have a ‘buy’ rating on the stock, and three have a ‘sell’, according to Bloomberg data. The average of 12-month analysts’ price targets implies a potential upside of 19%.
. Read more on Markets by NDTV Profit.Dam Capital expects a robust growth visibility for the company with the capacity target of 400 million tons per annum by fiscal 2030. Read MoreMarkets, Business, Notifications
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