Motilal Oswal Financial Services has issued a resounding BUY recommendation on JSW Infrastructure, setting a target price of Rs 370 per share, representing a potential upside of 20% from current levels. The report underscores JSW Infrastructure’s robust FY25 performance, strategic expansion into logistics, and ambitious growth roadmap. With a strong balance sheet, aggressive capex plans, and a clear vision to become India’s leading integrated ports and logistics player, JSW Infrastructure is positioned to capitalize on the nation’s infrastructure boom. Investors are advised to monitor key levels, with the stock currently trading at Rs 308, a 52-week range of Rs 218–361, and a free float of 14.4%.

Motilal Oswal’s Bullish Stance: BUY Call with Rs 370 Target

Motilal Oswal Financial Services has reiterated its BUY rating on JSW Infrastructure, projecting a target price of Rs 370 per share, premised on 23x FY27 EV/EBITDA. The research house highlights the company’s stellar operational and financial performance in FY25, its strategic foray into logistics, and a well-articulated growth strategy as key drivers for future value creation.

FY25: Record Volumes and Financial Outperformance

JSW Infrastructure handled a record 117 million metric tons (MMT) of cargo in FY25, marking a 9% year-on-year increase. This growth was propelled by higher throughput at Mangalore, Ennore, and Paradip terminals, as well as the commencement of interim operations at JNPA and Tuticorin.

Third-party cargo volumes surged 34% YoY to 57 MMT, now constituting 49% of the total cargo mix, up from 40% in FY24. This diversification reduces dependence on group companies and enhances revenue stability.

Financially, the company posted a 19% YoY rise in revenue to Rs 44.8 billion, a 15% increase in EBITDA to Rs 22.6 billion, and a 22% jump in adjusted PAT to Rs 14.5 billion. The EBITDA margin remained robust at 50.5%, and the net debt-to-equity ratio stood at a conservative 0.2x, underscoring financial discipline.

Strategic Expansion: Logistics Foray and Pan-India Ambitions

JSW Infrastructure’s acquisition of a 70.37% stake in Navkar Corporation and the Gati Shakti Multi-Modal Cargo Terminal at Arakkonam marks its entry into the logistics sector. This move is pivotal in transforming the company from a pure-play port operator to an integrated logistics powerhouse.

The logistics arm is targeting 50% revenue growth in FY26 and aims to achieve Rs 80 billion in revenue by FY30, with an expected EBITDA margin of approximately 25%. The company’s asset-light, integrated platform is designed to deliver end-to-end supply chain solutions across India.

Port Capacity Expansion: Marching Toward 400 MTPA by FY30

JSW Infrastructure has set an ambitious goal to expand its port capacity from 177 MTPA in FY25 to 400 MTPA by FY30. This will be achieved through a blend of greenfield projects, brownfield expansions, and enhanced connectivity infrastructure, supported by a planned capex of Rs 300 billion for ports and Rs 90 billion for logistics.

Key projects include:

Expansion at Goa Terminal (from 8.5 to 11 MTPA, with approvals pending for 15 MTPA)

Major expansions at Jaigarh (15 MTPA) and Dharamtar (21 MTPA) with a combined capex of Rs 23.6 billion

Construction of a 2 MTPA LPG terminal at Jaigarh (Rs 9 billion capex)

Greenfield developments at Keni (30 MTPA) and Jatadhar (30 MTPA)

Ongoing 302-km slurry pipeline in Odisha

Financial Metrics and Valuation: A Snapshot

JSW Infrastructure’s financial health remains robust, with a net debt-to-EBITDA ratio of ~1x and cash and cash equivalents of approximately Rs 25 billion as of March 2025. The company’s return ratios are stable, with RoE at 16.3% and RoCE at 12.7% for FY25.

Here’s a concise summary of key financial metrics:

ESG Initiatives: Sustainability at the Core

JSW Infrastructure has intensified its ESG focus, adopting the Miyawaki method for afforestation, electrifying cranes at Ennore, and reducing freshwater usage at Dharamtar by 34%. The company’s social initiatives include scholarships, ambulance services, and healthcare for truckers, while governance standards remain high with a diverse board and transparent CSR spending.

Risks and Concerns: What Investors Should Watch

Despite its strengths, JSW Infrastructure faces several risks:

Unhedged foreign currency liabilities, including USD 400 million in Green Bonds and a USD 120 million loan, expose the company to exchange rate volatility.

Continued dependence on JSW Group entities, which contributed 51% of total cargo in FY25, poses concentration risk.

Cargo mix remains heavily skewed toward coking coal, iron ore, and thermal coal (83% of FY25 volumes), limiting diversification.

Talent acquisition challenges could impact operational efficiency amid rapid expansion.

Stock Levels and Investor Takeaways

JSW Infrastructure is currently trading at Rs 308, with a 52-week range of Rs 218–361. The stock’s free float stands at 14.4%. Motilal Oswal’s target price of Rs 370 implies a 20% upside, supported by a projected 13% volume CAGR, 22% revenue CAGR, and 23% EBITDA CAGR over FY25–27.

Conclusion: Positioned for Leadership in India’s Port and Logistics Sector

Motilal Oswal’s analysis affirms JSW Infrastructure’s trajectory toward becoming India’s preeminent integrated ports and logistics operator. With a clear growth roadmap, prudent financial management, and a focus on sustainability, the company is well-placed to deliver superior returns to investors. The BUY call, with a target of Rs 370, is underpinned by strong fundamentals and a favorable macroeconomic backdrop.