JSW Infrastructure Buy: Prabhudas Lilladher Lifts Target to ₹339

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AuthorIshaan Verma|Published at:
JSW Infrastructure Buy: Prabhudas Lilladher Lifts Target to ₹339
Overview

JSW Infrastructure's Q3 FY26 performance met expectations, driven by robust logistics segment growth and volume increases at key ports. Despite lower port pricing impacting revenue per ton, overall cargo throughput showed resilience. Prabhudas Lilladher reiterates a 'BUY' rating, raising the price target to ₹339, citing strong future EBITDA multiples.

Operational Performance

JSW Infrastructure (JSWINFRA) reported inline operating performance for the third quarter of fiscal year 2026. This was bolstered by a 7.8% year-over-year volume increase and significant expansion in its logistics business. The company's port net selling rate (NSR) saw a 3.9% sequential decline, attributed to higher volumes from terminals with lower pricing structures. Overall cargo volume growth remained strong, propelled by robust throughput at its South West Port and Dharamtar facilities. Interim operations at Tuticorin and the JNPA liquid terminal also contributed, partially offset by reduced iron ore and coal volumes at Paradip.

Margin and Logistics Impact

Port EBITDA per ton moderated during the quarter. This was primarily due to a larger proportion of volumes originating from terminals that command lower pricing. However, the growth in the logistics segment provided crucial support. This expansion was led by a continued turnaround at Navkar Corporation and strong performance in both export-import (EXIM) and domestic cargo volumes, effectively mitigating the impact of softer unit metrics at the port level.

Outlook and Valuation

Looking ahead, JSW Infrastructure is trading at an enterprise value (EV) multiple of 20.5 times and 14.9 times its estimated EBITDA for fiscal years 2027 and 2028, respectively. Prabhudas Lilladher maintains its 'BUY' recommendation on the stock. The brokerage has revised its price target upwards to ₹339 from the previous ₹324. This target values the company at 21 times its estimated EBITDA for September 2027.

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