JSWINFRA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Financials & Profitability

Revenue Growth: JSW Infrastructure has shown impressive top-line growth — annual revenue rose from ₹1,603 Cr in FY21 to ₹4,476 Cr in FY25

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Profit Trends: Net profit jumped from ₹284 Cr in FY21 to ₹1,521 Cr in FY25

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. However, the latest quarterly PAT dropped from ₹84.9 Cr to ₹73.0 Cr, a 25.1% decline — signaling short-term volatility.

Return Metrics

ROE: 6.93% and ROCE: 9.32% — modest, but improving.

EPS: ₹1.75 — low relative to current price, but trending upward over the years.

Debt Profile: Debt-to-equity at 0.66 — healthy for an infrastructure company with capital-intensive operations.

Cash Flow: Strong operating cash flow of ₹2,100 Cr in FY25, though investing outflows remain high due to expansion

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💸 Valuation Indicators

Metric Value Insight

P/E Ratio 187 Extremely high vs. industry PE of 25.6 — richly valued.

P/B Ratio ~13.4 Expensive relative to book value ₹24.5.

PEG Ratio 5.34 Indicates overvaluation relative to earnings growth.

🔍 Conclusion: Valuation is stretched. Market is pricing in future growth and strategic positioning in port infrastructure.

⚓ Business Model & Competitive Edge

Core Operations: JSW Infrastructure is India’s second-largest commercial port operator, handling cargo across 10 locations.

Expansion Strategy

Operational capacity at 153 MTPA, targeting 300 MTPA by FY30.

Diversifying into container terminals, liquid cargo, and inland logistics.

Competitive Advantage: Integrated logistics solutions, strategic port locations, and strong parentage under JSW Group.

Growth Outlook: Analysts expect continued revenue and EBITDA growth driven by capacity expansion and cargo volume increase

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📉 Technicals & Entry Zone

RSI: 69.2 — nearing overbought territory.

MACD: 5.18 — bullish momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — medium-term strength.

📌 Suggested Entry Zone: ₹300–₹315 — closer to 50-DMA, offering better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals and strategic growth support long-term value.

Buy on Dips: Prefer entry below ₹315, especially if RSI cools off.

Monitor: Cargo volume growth, margin expansion, and execution of capacity targets.

If you'd like a forecast model for FY30 or a peer comparison with Adani Ports, I can build that next.

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