Multibagger JSW Infrastructure share price rises 9% to all-time high. Should you Buy, Sell or Hold the stock?

Stock Market Today; Multibagger JSW Infrastructure share price gained more than 9% to all time high on Monday during intraday trades.

JSW Infrastructure share price that opened at ₹330.75, slightly higher than previous close of ₹328.10 on the BSE , however gained strength and rose more than 9% to scale highs of ₹358.75.

JSW Infrastructure share price that has risen 124% in last one year has given Multibagger returns to investors.

JSW Infrastructure share price remains in focus after having announced winning large tender from railways last week. The Contract won by JSW Infrastructure from the Southern Railway, Chennai Division, is for Construction & Operation of Gati Shakti MultiModal Cargo Terminal (GCT) at Arakkonam and is entirely on Railway Land.

The JSW Infrastructure also had announced its plans and proposed acquisition of a 70.37% stake in Navkar Corporation.

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JSW Infrastructure share price has there after risen more than 11% in past two sessions.

Meanwhile analysts also highlighted the news reports suggesting JSW Infrastructure thinking of reconsider its approach for the Tajpur port project “should it be put out to bid again”, as a possible reason for higher investor interest. 

Indian private ports ended FY24 on a high note with Adani Ports and Special Economic Zone cargo reached 408 million tonne in FY24, up 20% YoY, and JSW Infra reached 107 million tonne, up 15% YoY, highlighted analysts at Prabhudas Lilladher. Together, Adani Ports and Special Economic Zone and JSW Infrastructure command 34% of all-India cargo. Over the past 3 years, they have significantly outpaced major ports in growth, with APSEZ growing 18% and JSW Infrastructure, 32%, compared to the 5% growth seen in major ports. This as per analysts highlights their increasing importance in the maritime logistics sector.

Analysts remain positive and say that Governments ambitious target of reaching 4 times cargo volumes by 2047 compared to the present, companies as APSEZ and JSW Infrastructure have been aggressive on their plans to add capacity.

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However in the near term some analysts have highlighted their concerns too. Those at Kotak Institutional Equities said that its a arduous task for JSW Infrastructure to grow platform on lack of large, scalable assets.

As per Kotak analysts, their assessment suggest that, acquisitions by APSEZ over time have not left many large, scalable operational assets for JSW Infrastructure to accelerate its journey of becoming a transportation platform. Such a journey would largely hinge on creating greenfield assets. For announced greenfield assets by JSW Infrastructure, it is difficult to assess the value creation is since the greenfield expansions ahve long gestation period and dependency on externalities, say analysts.

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 decisions