JSW Infra Shares Down After Q4: Why Brokerages Are Divided

JSW Infra‘s share price was down in the red on Monday going down around 4% to hit an intraday low of ₹248.20.

What Happened: JSW Infra reported a net profit of ₹330 crore for the March quarter, marking a 10% increase from the ₹300 crore posted in the same quarter last year. Revenue from operations for the quarter reached ₹1,096 crore, up approximately 20% from the ₹915.30 crore reported in the year-ago period.

Analyst Reactions: Motilal Oswal maintained its “buy” rating for the stock with a target price of ₹300. The brokerage firm said that the company’s numbers in the March quarter beat its estimates on revenue, EBITDA and profit. JSW Infrastructure revenue was 12% above the brokerage house’s estimates, while net profit of ₹370 crore was much above the estimated ₹320 crore.

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The brokerage said that as utilization and volumes are expected to ramp up further the company will likely gain market share and outpace market growth over the next few years. The domestic brokerage firm also highlighted that the company’s strategy to pursue value-accretive acquisitions of port-related logistics infrastructure is a positive step towards portfolio expansion. By acquiring strategic assets, the company aims to diversify its offerings, broaden its footprint, and further solidify its presence in the market.

On the other hand, analysts at Kotak Securities were not as upbeat about the stock. The brokerage maintained its “sell” rating for the stock with a price target of ₹205. The analysts said that organic volume growth was flat yoy and implied growth guidance was in mid-single digits. The brokerage expects EPS to grow by 24.8% in FY25E & by 21.5% in FY26E. The brokerage also remarked that the company’s gross margin declined by 70 basis points.

Price Action: JSW Infra’s share price was down 2.11% to trade at ₹253.05 at the time of writing on Monday.

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