JSW Infra's Ports, Logistics Expansion Plans To Fuel Sustainable Growth, Says Motilal Oswal, Maintaining 'Buy'

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Motilal Oswal Report

JSW Infrastructure Ltd. has reaffirmed that port capacity expansion remains a key priority, with a goal to achieve 400 mtpa by FY30. With expansions at JNPA, Tuticorin, Mangalore, and TNT ports, its port capacity has increased to 174mtpa now from 170mtpa in Sep’24.

Further, the company has an aggressive roadmap to build its logistics infrastructure and network under JSW Ports Logistics with a capex of Rs 90 billion by FY30. This investment is expected to generate revenue of Rs 80 billion and Ebitda of Rs 20 billion.

With a focus on expanding capacity, improving the third-party mix in overall cargo, and improving utilization levels at existing ports and terminals, we expect its volume growth trajectory to remain intact. JSW Infra expects to end FY25 with 10% volume growth.

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

We reiterate our Buy rating with a target price of Rs 380 (premised on 23x FY27 EV/Ebitda).

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