Adani Ports, JSW Infra Shares: Motilal Oswal Reiterates 'Buy' Rating On Bright Outlook

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

India’s ports sector is crucial to its trade ambitions and economic growth. With focused policy support, private investments, and infrastructure development under initiatives such as Sagarmala and the Maritime Amrit Kaal Vision 2047, India is well positioned to emerge as a global maritime hub.

However, addressing challenges related to policy delays, connectivity gaps, and environmental concerns will be the key to unlocking the sector's full potential.

India's extensive coastline and increased investments in inland waterways, coastal shipping, and port privatization initiatives by the government are expected to benefit companies like Adani Ports and Special Economic Zone Ltd. and JSW Infrastructure Ltd., enabling them to handle a larger share of volume at Indian ports.

Adani Ports (Buy) – The largest private port operator in India:

Adani Ports continues to gain market share while generating strong cash flows and retaining its leverage position, with a net debt-to-Ebitda ratio of two times as of Sep’24. We expect Adani Ports to register 10% volume growth and a CAGR of 14%/15%/19% in revenue/Ebitda/ PAT over FY24-27.

With consistent outperformance in cargo volumes, we reiterate our Buy rating with a target price of Rs 1,400 (based on 15 times Sep’26 EV/Ebitda).

JSW Infra (Buy) – Scouting for organic and inorganic expansions:

Considering stable growth levers at its existing ports and terminals, a higher share of third-party customers, sticky cargo volume from JSW Group companies, and an expanding portfolio, we expect JSW Infra to strengthen its market dominance, leading to a 14% volume CAGR over FY24-27. This should drive a 22% CAGR in revenue and a 21% CAGR in Ebitda.

We reiterate our Buy rating with a revised target price of Rs 330 (premised on 22x Sep’26 EV/Ebitda). JSW Infra is also our top pick in the ports domain.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.