DAM Capital has initiated coverage on JSW Infrastructure with a ‘Buy’ rating and a target price of ₹400, indicating a potential upside of 30.3% from the current market price of ₹307.05. The brokerage highlighted JSW Infra’s robust business model and strategic growth initiatives.
Key Highlights:
- Navkar Corp acquisition: The recent acquisition marks a significant shift in the business model, positioning JSW Infra as a comprehensive logistics player.
- Group cargo visibility: Strong group cargo flows and the ability to cross-sell to third-party clients strengthen the company’s revenue base.
- Becoming an end-to-end player: JSW Infra aims to transition into an integrated port-related logistics player.
- ROIC expectations: The brokerage estimates an average pre-tax ROIC of 19% over FY24-30.
- Financial strength: A well-capitalized balance sheet is expected to keep leverage ratios in check, ensuring financial stability.
DAM Capital believes that JSW Infra’s strong operational outlook and strategic expansions will drive long-term value creation.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.