JSW Infrastructure Ltd. share price target

About stock: JSW Infrastructure Limited, part of the $24 billion JSW Group is fastgrowing ports-related infrastructure company and second-largest private port operator with a capacity of 177 million tons per annum (MTPA). It operates twelve Port Concessions and 2 port terminals under O&M agreements in UAE. Its logistics (Navkar, Gati Shakti Terminal) business owns 2450+ Domestic standard containers,...

JSWINFRA’s strategy of augmenting capacity, modernizing infrastructure, and pursuing selective acquisitions is well aligned with India’s long-term port sector growth ambitions, as the government targets a fourfold expansion of capacity to 10,000MTPA by FY47 from the current ~2,700MTPA.

JSWIL has a strong liquidity position on a consolidated level marked by sufficient generations of cash accruals against repayment obligations and sufficient liquid investments (including unencumbered cash and bank balance and excluding earmarked IPO money) to the tune of ?3,025 crore as on March 31, 2024, and ~3,520 crore as on June 30, 2024, apart from unutilised working capital limits.

Navkar FY26 revenue/ EBIDTA to reach Rs7-8bn/Rs1bn volume growth and lower contribution from logistics business. Cargo volumes maintenance shutdowns, and lower third-party cargo, despite strong coal handling operations at Ennore, PNP and Paradip. Volumes at its largest port, Jaigarh, remained tepid due to the delay in government orders to Jul'25. Port...

JSW Infrastructure (JSWIL) reported a muted set of volumes at its ports at 29.4mt, with organic growth flat at 28mt and new acquisition adding 1.4mt in Q1FY26.

In FY25, JSWINFRA handled 117MMT of cargo (up 9% YoY), supported by higher volumes at terminals in Mangalore, Ennore, and Paradip, along with the commencement of interim operations at JNPA and Tuticorin.

JSWINFRA’s focus on brownfield capacity augmentation, infrastructure modernization, and strategic acquisitions aligns with India’s port sector growth drivers (government plans to quadruple port capacity to 10,000MTPA by FY47 from ~2,700MTPA currently).

JSW Infrastructure (JSWIL) reported subdued volumes of 117mt (FY25) – comprising 103mt (-3% YoY) from existing assets and 14mt from new assets.

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

During 3QFY25, JSW Infrastructure (JSWINFRA) completed the acquisition of a 70.37% share of Navkar Corporation (NAVKAR) through its subsidiary JSW Port Logistics (consolidated effective 11th Oct’24).

Second-largest private port operator with improving market share: JSW Infrastructure (JSWINFRA), with an aggregate capacity of 170MMT as of Sep’24, is the second-largest private port operator in India after Adani Ports (having a capacity of ~633MMT).

JSW Infrastructure (JSWIL), India’s second largest private port player, is well positioned to capture the opportunities arising from the government of India’s (GoI) thrust on infrastructure spending and privatisation of port terminals.

JSW Infrastructure (JSWINFRA) posted 18% YoY revenue growth to INR10b (in line) in 2QFY25.

Cargo volumes handled by JSW Infrastructure (JSWINFRA) exhibited YoY
growth of 15% in FY24 to 106.5MMT from 93MMT in FY23 (three-year CAGR
of 33% over FY21-24). Considering capacity ramp-up at existing ports along
with higher share of volumes from third-party customers, we expect the
growth momentum to continue.

JSW Infrastructure (JSWINFRA) reported a revenue growth of 20% YoY to
INR10.9b (12% above our estimate) in 4QFY24. The company handled cargo
volumes of 29.3MMT (+9% YoY) in 4Q. The share of third-party cargo
increased to 46% in 4QFY24 from 37% in 4QFY23.

Anchoring Growth

Issue Snapshot: Issue Open: Sep 25 Sep 27, 2023 Price Band: Rs. 113 119 *Issue Size: Rs 2,800.0 cr (Fresh Issue of Rs 2,800.0) Reservation for: QIB atleast 75% eq sh Non-Institutional upto 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail upto 10% eq sh Face Value: Rs.2 Bid size: - 126 equity shares and in multiples thereof 100% Book built Issue IPO Note- JSW Infrastructure Limited

IPO NOTE