Meet Motilal Oswal’s top stock pick for 2025

Shares of JSW Infrastructure Ltd. gained as much as 2% on Friday, December 27, after brokerage firm Motilal Oswal retained its ‘Buy’ rating on the stock, with a revised price target of ₹375 per share.

Motilal’s price target implies a potential upside of 21% on JSW Infrastructure from its closing levels on Thursday.

In its report, Motilal highlighted that JSW Infrastructure, with an aggregate capacity of 170 MMT as of Sept 2024, is the second-largest private port operator in India after Adani Ports (having a capacity of 633 MMT).

The company has reported a 22% compounded cargo volume over FY18-24 (13% year-on-year growth in the first half of FY25), far outpacing the industry growth rate of 4% over the same period.

The brokerage in its note mentioned that JSW Infra has embarked on a massive capex plan of ₹30,000 crore (₹15,000 crore over FY25-28) towards expanding the total cargo handling capacity from 170 mtpa currently to 288 mtpa by FY28 and eventually to 400 mtpa by FY30, banking on the rise of India’s cargo movement.

In line with its capex program, the company has undertaken brownfield expansions at its Jaigarh and Dharamtar ports (two of its largest ports in terms of capacity and volumes), adding a combined 36 MT with an estimated capex of ₹2,360 crore, which is targeted for completion by March 2027.

Leveraging its strong balance sheet, the company aims to pursue organic and inorganic growth opportunities, strengthen its market presence, and expanding its capacity to 400 MMT by 2030, up from the current capacity of 170 MMT.

As utilization and volumes continue to ramp up, Motilal expects strong growth to continue. “We estimate a volume/revenue/EBITDA/APAT CAGR of 14%/19%/20%/19% over FY24-27,” the brokerage said.

Key downside risks, as per the brokerage, include a slowdown in domestic and global trade.

Of the 14 analysts that have coverage on JSW Infrastructure, 11 of them have a ‘Buy’ rating on the stock, while three of them have a ‘Sell’ rating.

Shares of JSW Infrastructure are currently trading 1.16% higher at ₹313.15. The stock, despite the 13% correction from the peak, has still risen nearly 50% so far in 2024.