JSW Infra share price cracks 8% after Q1 result; is it buy-worthy? Here’s what top brokerages say | Stock Market News

JSW Infra share price: Shares of JSW Infrastructure plunged almost 8 per cent in early trade on the BSE on Friday, July 19, a day after the company reported an 8 per cent year-on-year (YoY) drop in its April-June quarter (Q1FY25) profit. JSW Infra share price opened at ₹316.10 against its previous close of ₹336.30 and plunged as much as 7.5 per cent to the level of ₹311. The stock, however, pared losses and traded 5.29 per cent down at ₹318.50 around 10 am. The equity benchmark Sensex was 0.21 per cent down at 81,172 at that time.

India’s second-largest private port operator in terms of cargo handled, JSW Infrastructure, after market hours on Thursday, July 18, reported an 8 per cent YoY fall in its Q1FY25 consolidated net profit to ₹296.55 crore against a profit of ₹322.20 crore in the same quarter last year.

Revenue from operations for the quarter under review, however, jumped 15 per cent YoY to ₹1,009.77 crore from ₹878.10 crore in Q1FY24.

The company said its EBITDA for the quarter rose 24 per cent YoY to ₹609 crore, while EBITDA margin stood at 55 per cent.

Brokerage firms cautious

Even though top brokerage firms appear divided about the stock’s prospects after the Q1 results, there are hues of caution.

Motilal Oswal Financial Services has maintained a buy call on the stocks with a target price of ₹390, but it marginally cut its APAT (adjusted profit after tax) estimates by 4 per cent and 2 per cent for FY25 and FY26, respectively. Motilal estimates a volume, revenue, EBITDA, and APAT CAGR of 15 per cent, 22 per cent, 26 per cent and 28 per cent, respectively, over FY24-26.

“Leveraging its strong balance sheet, JSW Infra aims to pursue organic and inorganic growth opportunities, strengthen its market presence, and expand its capacity to 400MMT by 2030, up from the current capacity of 170MMT. As utilization and volumes continue to ramp up, we expect strong growth to continue,” said Motilal Oswal.

On the other hand, Kotak Institutional Equities has a sell call on the stock with a fair value of ₹215.

Kotak pointed out that JSW Infra’s Q1 results suggest sustenance of trends seen in Q4, such as captive volumes flattening out YoY, non-captive volumes housed in assets with limited capacity continuing to drive volume growth, and EBITDA margin getting constrained.

“We lower volume estimates by 1 per cent and retain ₹215 fair value, implying nearly 18 times one-year forward EV/EBITDA. JSW Infra continues to invest in assets to become a complete logistics solution provider, although lack of large and scalable assets in the market may prolong this journey,” said Kotak.

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