On Wednesday, Elara Securities initiated coverage on JSW Infrastructure Ltd (JSWINFRA:IN) stock with a Buy rating and a price target of INR 405.00. The firm's analyst highlighted the company's potential for growth within the ports sector, which is expected to see significant expansion.
The analyst from Elara Securities expressed a positive outlook on JSW Infrastructure, citing its position as the second-highest and fastest-growing port in its sector. The company's strong customer base, high return ratios, and robust financial health were noted as key factors contributing to its promising future.
The analyst projected that JSW Infrastructure's capacity is anticipated to double to 400 million tonnes by the fiscal year 2030, as indicated by the company's guidance.
The coverage initiation reflects the belief that JSW Infrastructure will maintain a premium valuation compared to its peer, Adani Ports & SEZ (ADSEZ:IN). This optimism is based on clearer visibility regarding capacity and volume expansion at JSW Infrastructure. Elara Securities' price target of INR 405 is grounded on a 28x multiple of the company's expected FY27E EV/EBITDA, with an earnings compound annual growth rate (CAGR) of 13% forecasted from FY24 through FY27E.
JSW Infrastructure's strategic focus on enhancing its infrastructure and capacity aligns with the broader growth narrative of the ports sector. The company is poised to capitalize on this expansion, leveraging its financial stability and strategic customer relationships. The coverage by Elara Securities underscores the potential for JSW Infrastructure to outperform in the market and achieve its ambitious targets in the coming years.
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