Jefferies has maintained its Buy rating on JSW Infrastructure and raised its target price to Rs 400 from Rs 395, expecting a decade of double-digit growth. The brokerage sees port capacity expansion, a sharp rise in logistics earnings, and higher utilisation at new ports and terminals driving the company's growth through FY30 and beyond.
The positive outlook comes against the backdrop of improving activity across the ports and logistics sector. Jefferies noted that overall port volumes rose 6% YoY in September, while India's exports and imports, or EXIM, trade grew 13% from a year ago. Higher container traffic, coal shipments, petroleum cargo, and gems and jewellery exports supported trade growth. Container volumes also continued to outperform rail volumes, while freight rates rebounded amid Middle East tensions and shipping disruptions.
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Key Highlights
- Rating: Maintain Buy.
- Target price: Raised to Rs 400 from Rs 395.
- Port volumes: Industry volumes rose 6% YoY in September.
- EXIM trade: India's external trade grew 13% YoY.
- Port capacity: JSW Infrastructure targets a 2.2-fold increase by FY30.
- Logistics Ebitda: Targets a 14-fold increase by FY30.
- Ebitda growth: Jefferies expects over 30% annual growth between FY26 and FY30.
- Beyond FY30: Expects Ebitda growth of over 15% annually to continue.
- Additional growth drivers: Higher utilisation at new ports and terminals, and the government's port privatisation plans.
Port Expansion And Logistics To Drive Growth
Jefferies expects JSW Infrastructure's expansion plans to support strong earnings growth over the coming years. The company aims to increase its port capacity 2.2 times by FY30 and grow logistics Ebitda 14-fold over the same period.
The brokerage expects Ebitda to grow at over 30% annually between FY26 and FY30, with growth remaining above 15% annually beyond FY30. Higher utilisation at new ports and terminals could help the company handle more cargo and improve the contribution of these facilities to its business.
Jefferies also highlighted that JSW Steel's plan to increase domestic capacity by 46% over FY30-32 could support demand for port and logistics services. Higher steel production capacity may create additional cargo-handling opportunities for JSW Infrastructure, although the actual benefit will depend on cargo movement and utilisation.
Privatisation Plans Offer Further Growth Opportunities
Jefferies also sees the government's port privatisation plans as an opportunity for JSW Infrastructure to expand its presence. New terminals and higher utilisation could add to growth as the company increases capacity.
The brokerage's positive view rests on both the sector's improving activity and the company's longer-term expansion plans. With port capacity and logistics earnings targeted to rise sharply by FY30, Jefferies expects JSW Infrastructure to sustain strong earnings growth over the next decade.
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