Broker’s call: JSW Infra (Buy)



Target: ₹255

CMP: ₹238.95

JSW Infrastructure (JSWIL) in its filing has announced the acquisition of a majority stake (50 per cent equity plus 1 share) in PNP Port Maritime Service Pvt Lt d (PNPL) from Shapoorji Pallonji Group for a cash consideration of ₹270 crore (enterprise value of ₹700 crore, 16.7xFY23 EV/EBITDA as per our calculations).

This is in line with JSWIL’s value-accretive acquisition strategy, as outlined in our earlier coverage. JSWIL has already announced two acquisitions (liquid terminal in Fujairah and CTO licence in Nov’23) since its listing in Oct’23.

PNPL operates multi-purpose jetties and has good road and rail connections to industries in Maharashtra, Madhya Pradesh, Karnataka, and other states and can, consequently, help JSWIL expand its third-party volume.

PNPL also has adequate land to expand its capacity from 5 mntpa currently to 19mntpa. We reflect this acquisition in our estimates (1-2 per cent increase in FY25/26 EPS estimate) and revise our Mar’25TP to ₹255 (earlier ₹250), basis 18x FY26 EV/EBITDA. 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.

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