JSW Infrastructure stock gets Buy rating, Jefferies cites 20%+ EBITDA CAGR by FY30

Published 27/08/2024, 10:40
JSW Infrastructure stock gets Buy rating, Jefferies cites 20%+ EBITDA CAGR by FY30

On Tuesday, Jefferies, a global financial services company, initiated coverage on JSW Infrastructure Ltd (JSWINFRA:IN), a key player in the Indian infrastructure sector, with a Buy rating and a price target of INR375.00. This initiation reflects the firm's positive outlook on the company's growth prospects.

The coverage is based on expectations that JSW Infrastructure's market share in the ports sector will increase from the current 7% to 11% by the financial year 2030 (FY30E). Jefferies attributes this growth projection to JSW Infrastructure's aggressive expansion plans, which are anticipated to contribute to 23-28% of the company's incremental volume growth.

The remaining growth is expected to stem from a strategic focus on coastal shipping and enhanced efficiency compared to neighboring government ports. Jefferies also notes the company's recent venture into logistics through the acquisition of Navkar Corporation Ltd., which is seen as a potential catalyst for further upside.

The Buy rating is supported by a valuation of 32 times the enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) for September 2026 estimates. This valuation reflects Jefferies' confidence in JSW Infrastructure's ability to achieve a compound annual growth rate (CAGR) of over 20% in EBITDA between the fiscal years 2024 and 2030.

The price target set by Jefferies suggests a 20% potential upside from the current market price levels of JSW Infrastructure's shares. This target is indicative of the firm's belief in the company's robust growth trajectory and its strategic initiatives to expand its market presence in the infrastructure sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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