JSW Infrastructure: Elara Capital Upgrades Stock – Analyzed
Elara Capital has made a positive move, upgrading JSW Infrastructure to a “Buy” recommendation. They’ve raised their price target from ₹345 to ₹362, believing the company has strong growth potential for the future.
Key Points
- Elara sees big growth starting in FY28, boosted by new ports and logistics.
- JSW Infrastructure’s port volumes are currently affected by lower iron ore exports.
- New ports like Kolkata and Oman will increase port capacity to 390 MT by FY30.
- Logistics Ebitda margins could jump to 30% thanks to new rail rakes business.
- JSW is buying rail logistics companies for around ₹1210 crore – a smart investment.
- Port volumes are expected to grow at 16% from FY25 to FY30E.
JSW Infrastructure is getting a thumbs-up because experts think it will grow a lot over time. They predict this growth will really kick in by the year 2028.
Right now, the company’s port volumes aren’t as high as they could be, mainly because fewer people are shipping iron ore. However, the company is still making money from its ports because of higher prices for shipping goods.
Elara is adding new things to JSW Infrastructure, like a big container port in Kolkata and a huge port in Oman. These additions will significantly increase the total capacity of the ports, going from 180 million tons to 390 million tons by 2030.
The company is also investing in rail logistics, buying three rail companies for about ₹1210 crore. This will help boost profits and create a more stable income source.
Experts believe that the company’s profit margins – how much money they make – could increase significantly. They expect the logistics profits to grow from 15% to 30% thanks to the new rail business and bigger capacity for transporting goods.
The rail acquisition is a smart move because it offers a reliable income stream with contracts lasting 10 years. It also creates connections with JSW Infrastructure’s ports, making everything more efficient.
Port volumes are expected to grow at a rate of 16% from FY25 to FY30E.
“Investing in companies with strategic expansions and diversified revenue streams is key to long-term growth.”
