JSW Infrastructure: Prabhudas Lilladher Maintains Buy Recommendation with Target Price of Rs 342

JSW Infrastructure Reports Strong Q4FY26 Operating Performance

JSW Infrastructure (JSWINFRA) has announced a robust operating performance for the fourth quarter of fiscal year 2026, driven by several key factors. The company's ancillary services income has increased, along with price hikes at a few of its ports. Additionally, the continued ramp-up in its logistics business has contributed to its strong quarterly performance.

A significant portion of JSWINFRA's quarterly earnings came from recurring income from H-energy, which is a result of the company's long-term take-or-pay agreement for LNG cargo handling, valued at Rs750 million. The company also recorded forex gains of Rs170 million, storage income, and price hikes at South-West Port, Ennore, and Mangalore Container Terminals. Despite a 1.3% year-over-year decline in cargo volumes due to disruptions at Fujairah and cargo deferments caused by vessel shortages and higher freight costs, the company's port EBITDA per tonne improved due to a higher contribution from its own ports.

The company's logistics business also reported a robust 74% year-over-year revenue growth, led by improved utilisation of Navkar and a strong performance in its rail rakes business. This growth supported the company's consolidated EBITDA. JSWINFRA's overall ports capacity increased to 183 million tonnes per annum (mtpa) during the quarter, following expansion at Ennore Coal Terminal and the commissioning of the JNPA Liquid Terminal.

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Maintaining Estimates and Recommendation

We maintain our estimates for JSWINFRA and expect the company to deliver a strong 32% EBITDA compound annual growth rate (CAGR) over fiscal years 2026-2028. The company's stock is trading at an enterprise value (EV) of 22.0x and 16.4x its estimated EBITDA for fiscal years 2027 and 2028, respectively. We maintain a 'BUY' recommendation for the stock with a revised target price of Rs342, valuing the company at 19x its estimated EBITDA for March 2028.