JSW Infrastructure share price gains 10% to hit upper circuit post Q2 results: Should you Buy, Sell or Hold the stock?

Stock Market Today: JSW Infrastructure share price gained 10 in the intraday trades on Tuesday, which also remains its upper circuit limit. The company had declared post Q2 results on Monday post market hours:

The JSW Infrastructure share price opened at ₹308.95 on Tuesday on the BSE , up more than 7% over previous close of ₹287. The JSW Infrastructure share price thereby gained further taking overall gains for the stock to 10% hitting intraday highs of ₹316.25 that also happened to be its upper price band limit .

Notably JSW Infrastructure share price has given Multibagger returns having more than doubled since its listing in October last year (2023)

Q2 Results

From ₹848.3 crore in the year ago quarter to ₹1,001 crore in the July- September'2024 quarter, JSW Infrastructure's topline grew by 18%. The reported consolidated net profit increased from ₹254.4 crore to ₹371.5 crore, a 46% increase.

Profits Before Interest, Tax, Depreciation, and Amortization, or PBITDA, increased by 48% to ₹675.7 crore from ₹456.7 crore. In contrast, the EBITDA margin increased from 53.8% to 67.5%.

Analysts views

Analysts expect strong growth moving forward. For FY25, volume growth is anticipated at 10% YoY as per Motilal Oswal Financial Services. Leveraging its strong balance sheet, JSW Infrastructure 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 (million metric tonne)

Considering stable growth levers at its existing ports and terminals, a higher share of third-party customers, sticky cargo volume from JSW Group companies, and an expanding portfolio, MOFSL expects JSW Infrastructure to strengthen its market dominance, leading to a 14% volume CAGR over FY24-27. This should drive a 21% CAGR in revenue and a 23% CAGR in EBITDA over the same period as per MOFSL analysts who have a buy rating on the stock.

Jefferies India Pvt Ltd believes that on a small base JSW Infrastructure's EBITDA growth will be 20% plus from current levels with group volumes giving comfort on utilisation. Their revised target price for the stock at Rs360 is based on 3 time Enterprise value by Ebitda on FY27 Estimates compared to 32 times September 26 estimates earlier), largely mirroring its trading multiples for FY24.

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.