JSW Infra shares rise 4% as Motilal Oswal initiates coverage on port operator

Shares of the country’s second-largest port operator JSW Infrastructure Ltd rose over 4% today after financial services firm Motilal Oswal initiated coverage on the stock with a target price of Rs 300. JSW Infrastructure stock gained 4.27% to Rs 257.30 against the previous close of Rs 246.75 on BSE. Market cap of the firm rose to Rs 53,487 crore. 

The stock fell to a 52-week low of Rs 141.75 on March 29, 2023 and rose to 52-week high of Rs 276 on February 26, 2024.

Motilal Oswal believes that JSW Infrastructure’s focus on strategic acquisitions, rising share of third-party customers and long-term contracts with JSW Group companies should improve its growth prospects going ahead.

"We estimate that JSW Infra should generate Rs 7,800 crore in cumulative cash flow from operations over FY 23-26. This contribution will help to maintain a stable debt profile, even amid ongoing acquisitions. The company's strategic focus on acquisitions, expanding share of third-party customers, and long-term contracts with JSW Group entities position it favourably to leverage growth opportunities in the transportation industry," the brokerage added.

In terms of technicals, the relative strength index (RSI) of the stock stands at 62.7, signaling the stock is trading neither in the overbought nor in the oversold zone. JSW Infra shares are trading higher than the 5 day, 20 day, 50 day, 100 day moving averages.

In the December 2023 quarter, the company reported a 118 percent year-on-year (YoY) rise in net profit to Rs 250.7 crore against Rs 114.9 crore profit in the December 2022 quarter. Revenue climbed 21 percent in Q3 to Rs 1018.3 crore against Rs 842 crore in the December 2022 quarter.

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.