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JSW Infra Gets Rating Upgrade From PL Capital, Sees 27% Upside On Logistics Play

JSW Infra Gets Rating Upgrade From PL Capital, Sees 27% Upside On Logistics Play
JSW Infra will acquire JSW Rail, JSW Minerals Rail, and JSW South Rail for an enterprise value of Rs 1,212 crore.(Photo: NDTV Profit)
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JSW Infrastructure Ltd
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JSW Infra has announced a strategic transaction to scale-up of its multimodal logistics capabilities through the acquisition of JSW Rail, JSW Minerals and JSW (South) Rail from the promoter group company at an EV of Rs 12.12 billion.

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.

PL Capital Report

PL Capital has upgraded JSW Infrastructure Ltd. to Buy from Accumulate with a target price of Rs 336, implying a potential upside of ~27% from the current market price of Rs 265.

The upgrade follows a sharp correction in the stock and the company's strategic move to strengthen its multimodal logistics platform through the acquisition of three rail logistics entities.

JSW Infra has announced a strategic transaction to scale-up of its multimodal logistics capabilities through the acquisition of JSW Rail, JSW Minerals and JSW (South) Rail from the promoter group company at an EV of Rs 12.12 billion.

This move is expected to strengthen the company's presence in inland transportation, by providing immediate access to scarce GPWIS/LSFTO licenses and adding an operational rake fleet that will support long-term cargo movement across steel, cement and other bulk industries.

With rail freight volumes in India expected to nearly double by FY30 and a moratorium on new GPWIS licenses limiting competitive intensity, we believe this is a well-timed acquisition.

Click on the attachment to read the full report:

PL Capital - JSW Infra Company Update.pdf
VIEW DOCUMENT

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