JSW Infra - Unlocking The Portal Of Opportunities: Motilal Oswal Initiates Coverage With A Buy

Motilal Oswal Report

With the addition of new ports, improving efficiency of current ports and terminals, and a large part of capex already undertaken, we anticipate cash flow generation to remain stable. We estimate that JSW Infrastructure Ltd. should generate ~Rs 78 billion in cumulative cash flow from operations over FY23-26.

This contribution will help to maintain a stable debt profile, even amid ongoing acquisitions. We initiate coverage on the stock with a 'Buy' rating and a target price of Rs 300 (premised on 18 times FY26E enterprise value/Ebitda).

The company's strategic focus on acquisitions, expanding share of third-party customers, and long-term contracts with JSW Group entities position it favorably to leverage growth opportunities in the transportation industry.

Key risks

A slowdown in domestic and global trade due to geopolitical disruptions could affect the company’s port operations. Further, JSW Infra derives a substantial portion of its revenue from its top five customers, two of which are related parties.

If such customers were to suffer a deterioration of their business, cease doing business with the company or substantially reduce their dealings with JSW Infra, it may have a material impact on its business, results of operations, cash flows, financial condition and future prospects.

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.