JSW Infra share price locked at 8% upper circuit to hit 52-week high; brokerage sees 12% upside, raises TP by 2% | Mint
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Business News/ Markets / Stock Markets/  JSW Infra share price locked at 8% upper circuit to hit 52-week high; brokerage sees 12% upside, raises TP by 2%

JSW Infra share price locked at 8% upper circuit to hit 52-week high; brokerage sees 12% upside, raises TP by 2%

Domestic brokerage firm JM Financials has reiterated its ‘buy’ rating for JSW Infrastructure and raised the target price by 2 per cent over the recent uptrend in its share price.

JSW Infrastructure share price hit its 52-week high mark on December 6 (Photo: Courtesy BSE X channel account)Premium
JSW Infrastructure share price hit its 52-week high mark on December 6 (Photo: Courtesy BSE X channel account)

JSW Infrastructure Share Price Today: Shares of JSW Infrastructure were locked at 8 per cent upper circuit at 245 apiece on the BSE, hitting its 52-week high mark on Wednesday, December 6. Domestic brokerage firm JM Financials has reiterated its ‘buy’ rating for the stock and raised the target price by 2 per cent over the recent uptrend in share price. 

At a current market price (CMP) of 238, JM Financials has given a revised target price of 255 for JSW Infrastructure, which is 2 per cent higher than the previous target of 250 given in March 2023 and sees a potential upside of 12.3 per cent on the stock. 

JSW Infrastructure Share Price

On Wednesday, shares of JSW Infrastructure opened at 227.20, and gained 7.83 per cent to hit a 52-week high of 245, against a previous close of 227.15 on the BSE. The marine cargo handling company commands a market capitalisation of 50,179.54 crore.

Also Read: JSW Infrastructure share price debuts at 20% premium at 143 on NSE and BSE

Shares of JSW Infrastructure settled 5.19 per cent higher at 238.95 apiece on the BSE. Part of Sajjan Jindal-owned JSW Group, JSW Infrastructure is a port-related infrastructure company. Its ports and terminals have an installed cargo handling capacity of 153.43 MTPA.

Shares of JSW Infrastructure got listed at a premium on the stock exchanges in October 2023. On the NSE and BSE, JSW Infrastructure share price was listed at 143 per share, 20.2 per cent higher than the issue price of 119.

Here's why the brokerage has raised its target price on JSW Infrastructure:
PNP port acquisition to be value-accretive

Earlier this week, JSW Infrastructure announced that said it has signed an agreement with SP Port Maintenance, a Shapoorji Pallonji Group company, to acquire majority stake in PNP Maritime Services (PNP Port). 

The agreement is to acquire over 50 per cent shares in PNP Port through its subsidiary JSW Dharamtar Port, JSW Infrastructure said in an exchange filing.

"JSW Dharamtar Port has entered into share purchase and other relevant transaction documents for acquisition of 50 per cent plus 1 shares (10,00,001 equity shares) of PNP Maritime Services Private Limited from SP Port Maintenance Private Ltd," it said.

PNP Maritime Services will become a step-down subsidiary of the company, it said. The transaction is for maximum equity purchase consideration of 270 crore. It is expected to be completed in 15 days.

In a separate statement, JSW Infrastructure said the acquisition is expected to strengthen its position to provide hub-and-spoke model services to customers, thereby saving substantially in the logistics costs.

Also Read: JSW Infrastructure acquires Shapoorji Pallonji Group’s stake in PNP port

JSW Infrastructure intends to upgrade PNP Port facilities and expand its capacity from current 5 MTPA to 19 MTPA (million tonne per annum) in a phased manner. The acquisition values PNP Port at an enterprise value of around 700 crore with the current capacity of 5 MTPA.

‘’This acquisition is in line with JSW Infrastructure's strategic vision to organically or inorganically expand to offer comprehensive logistics services closer to areas where cargo is consumed or generated'' said JM Financials. 

‘’PNP port is expected to strengthen JSW Infra's ability to provide Hub & Spoke model services to customers (and also expand the share of third-party customers) and also develop huge synergies with its existing ports and terminals,'' added the brokerage.

Background on PNPL Port

PNPL is an operational port situated at Shahabad in Raigad, Maharashtra, with a 30-year concession (expiring in Sep’29) from Maharashtra Maritime Board. It currently has a capacity of 5mntpa and handled bulk cargo of 3.9mnt in FY22 (2.9mnt in 1HFY23). 

PNPL has a strategic location advantage with direct access to large cargo centres in Maharashtra through the Central and Konkan Railway networks and the Mumbai-Goa highway. This will help in seamless handling of container, liquid, and bulk cargo shipments and enable JSW Infrastructure to cater to diverse customer needs.

Also Read: JSW Infra Q2 Results: Net profit jumps 85% to 256 crore, revenue rises 25%; cargo volumes up 27% YoY

‘’We believe that this strategic acquisition will grant JSW Infra access to more regions in the hinterland and expand the share of third party cargo. Presently, the PNP port primarily handles coal imports, which are being carried out manually, leading to low margins (~20 per cent),'' said JM Financials.

‘’We believe JSW Infra will be able to expand PNP’s margins over time by adequately investing in its modernisation. We reflect this acquisition in our estimates and arrive at a revised Mar’25 target price of 255 basis, 18x FY26 EV/EBITDA,'' said the brokerage.

Stock Market Today

Domestic equity benchmarks the Sensex and Nifty 50 extended their record-setting spree into the third consecutive session on Wednesday as sentiment remained bullish on the expectations of political stability after General Elections 2024 and a strong growth outlook. Nifty 50 and Sensex closed higher for the seventh consecutive session. While the Nifty 50 has jumped 5.8 per cent, the Sensex has gained 5.6 per cent in the last seven days. 

On Wednesday, Nifty 50 closed at 20,937.70, up 83 points, or 0.40 per cent while the Sensex closed the day with a gain of 358 points, or 0.52 per cent, at 69,653.73. Both indices closed at their fresh closing peaks. During the session, the Nifty 50 hit its fresh record high of 20,961.95 and the Sensex, too, scaled a fresh peak of 69,744.62. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.bing toou buy

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Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 06 Dec 2023, 04:41 PM IST
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