JSW Infra shares get two buy calls in two days but stock unmoved
JSW Infra stock opened at Rs 322.75 and hit a high of Rs 326.45 on BSE today. Market cap of the firm stood at Rs 67,882 crore.
- Oct 16, 2024,
- Updated Oct 16, 2024 12:51 PM IST
Shares of port operator JSW Infrastructure Ltd have remained unmoved in the last two sessions even as the JSW Group received two buy calls in two days. On Tuesday, brokerage firm Nuvama Institutional Equities initiated coverage on the stock with a 'Buy' recommendation and a price target of Rs 390 per share.
Today, Elara Capital initiated coverage on JSW Infra with a Buy rating and a price target of Rs 405 based on 28x FY27E EV/EBITDA. However, the stock was unmoved in the current session. It opened at Rs 322.75 and hit a high of Rs 326.45 on BSE today. Market cap of the firm stood at Rs 67,882 crore.
The stock fell to a 52-week low of Rs 160.50 on October 26, 2023 and rose to 52-week high of Rs 361 on July 4, 2024.
On October 15, the stock closed at Rs 322.75 against the previous close of Rs 319.20 on BSE.
Nuvama in a report said JSW Infrastructure was poised to sustain strong long-term growth supported by favourable macro tailwinds (4 times capacity growth over the next 25 years), organic—group cargo growth, particularly JSW Steel—and inorganic growth in the ports and logistics segments.
On JSW Steel’s capex plans, Nuvama said the group may continue to contribute 50–55% over long term, providing great visibility to JSW Infrastructure.
Nuvama expects the firm to report revenue, EBITDA, and profit Compounded Annual Growth Rate (CAGR) of 19%, 16%, and 15%, respectively, over FY24–27 estimates on the back of steady volume growth.
"We value the stock at 25 times FY28E EV/EBITDA, discounted back to Dec-25E, yielding a target price of ?390," the brokerage noted.
On the other hand, Elara Capital said limited competition due to high entry barriers would drive market share gains for the port operator.
JSW Infra is eyeing 80% of new capacity from ports with higher margin vs terminals said Elara Capital adding that volume commitment from anchor customers ensures better utilization, leading to high profitability.
In terms of technicals, the relative strength index (RSI) of the stock stands at 46.9, signaling the stock is trading neither in the overbought nor in the oversold zone. JSW Infra shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than the 100 day, 150 day and 200 day moving averages.
JSW Infrastructure is a private player focused on developing, operating and maintaining ports services, ports-related infrastructure development activities, and development of infrastructure. It offers port services that involve marine services, including the piloting of vessels using tugs, mooring, berthing, and de-berthing; stevedoring services, including loading/unloading cargo to and from berthed vessels using mobile harbor cranes/ship unloaders.
Shares of port operator JSW Infrastructure Ltd have remained unmoved in the last two sessions even as the JSW Group received two buy calls in two days. On Tuesday, brokerage firm Nuvama Institutional Equities initiated coverage on the stock with a 'Buy' recommendation and a price target of Rs 390 per share.
Today, Elara Capital initiated coverage on JSW Infra with a Buy rating and a price target of Rs 405 based on 28x FY27E EV/EBITDA. However, the stock was unmoved in the current session. It opened at Rs 322.75 and hit a high of Rs 326.45 on BSE today. Market cap of the firm stood at Rs 67,882 crore.
The stock fell to a 52-week low of Rs 160.50 on October 26, 2023 and rose to 52-week high of Rs 361 on July 4, 2024.
On October 15, the stock closed at Rs 322.75 against the previous close of Rs 319.20 on BSE.
Nuvama in a report said JSW Infrastructure was poised to sustain strong long-term growth supported by favourable macro tailwinds (4 times capacity growth over the next 25 years), organic—group cargo growth, particularly JSW Steel—and inorganic growth in the ports and logistics segments.
On JSW Steel’s capex plans, Nuvama said the group may continue to contribute 50–55% over long term, providing great visibility to JSW Infrastructure.
Nuvama expects the firm to report revenue, EBITDA, and profit Compounded Annual Growth Rate (CAGR) of 19%, 16%, and 15%, respectively, over FY24–27 estimates on the back of steady volume growth.
"We value the stock at 25 times FY28E EV/EBITDA, discounted back to Dec-25E, yielding a target price of ?390," the brokerage noted.
On the other hand, Elara Capital said limited competition due to high entry barriers would drive market share gains for the port operator.
JSW Infra is eyeing 80% of new capacity from ports with higher margin vs terminals said Elara Capital adding that volume commitment from anchor customers ensures better utilization, leading to high profitability.
In terms of technicals, the relative strength index (RSI) of the stock stands at 46.9, signaling the stock is trading neither in the overbought nor in the oversold zone. JSW Infra shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than the 100 day, 150 day and 200 day moving averages.
JSW Infrastructure is a private player focused on developing, operating and maintaining ports services, ports-related infrastructure development activities, and development of infrastructure. It offers port services that involve marine services, including the piloting of vessels using tugs, mooring, berthing, and de-berthing; stevedoring services, including loading/unloading cargo to and from berthed vessels using mobile harbor cranes/ship unloaders.