Brokerage firm Investec has initiated coverage on JSW Infrastructure Ltd. with a ‘Buy’ rating and a price target of ₹370 per share. Investec’s price target implies a potential upside of 15% on JSW Infra from Tuesday’s closing levels.
In its report, Investec highlighted that JSW Infrastructure is on track to deliver more than 20% CAGR in revenue and EBITDA during FY24-30, based on currently announced projects. The brokerage firm also said there is significant optionality of new concessions given.
Additionally, Investec mentioned that the government’s aggressive port privatisation targets can lead to higher revenue and EBITDA CAGR.
The company’s opportunistic management approach and strong balance sheet were also cited as key strengths.
Investec also said that JSW Infrastructure’s premium valuations look justified.
Earlier in August, Jefferies had initiated coverage on JSW Infrastructure with a ‘Buy’ recommendation and a price target of ₹375.
Jefferies believes that the trend of private sector ports seeing volume growth and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) being aided by market share gains, acquisitions and expansions should continue.
The brokerage expects All-India Port Cargo to grow at a Compounded Annual Growth Rate (CAGR) of 6% between financial year 2024 and 2030, which is higher than the 5% growth seen in the last 10 years.
Delays in group capex plans that aid volume growth is a key risk for the stock.
Out of the 12 analysts that have coverage on JSW Infrastructure, nine of them have a ‘Buy’ rating on the stock, while three of them have a ‘Sell’ rating.
Shares of JSW Infrastructure settled 2.14% higher at ₹322.25. The stock, despite the 11% correction from the peak, is still up 53% so far this year.
Content retrieved from: https://www.cnbctv18.com/market/jsw-infrastructure-share-price-target-investec-says-premium-valuation-justified-upside-2024-returns-19518953.htm.
