JSWINFRA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: JSW Infrastructure Ltd. (JSWINFRA)

Rating: 4.0

JSW Infra offers a promising long-term story with healthy return ratios, manageable debt, attractive PEG valuation, and institutional interest. However, moderation in recent profits and lukewarm dividend yield call for strategic positioning and disciplined holding.

🔍 Strengths vs. Risks

✅ Strengths

Strong ROE & ROCE: 16.2% ROE and 13.9% ROCE indicate robust capital efficiency.

PEG Ratio of 0.64: Significantly favorable for long-term investors, implying earnings growth isn’t overpriced.

Low leverage: Debt-to-equity of 0.52 keeps balance sheet nimble.

Institutional interest: FII holding surged by 1.89%, showing global investor appetite.

Technically stable: RSI of 50.2 and MACD positive suggest consolidation rather than bearish momentum.

❌ Watch-outs

P/E of 41.0 is well above industry average (25.7) — reflects premium pricing.

Quarterly Profit Dip: PAT fell from ₹509 Cr. to ₹385 Cr., a cautionary signal on earnings trajectory.

Weak dividend yield: 0.26% offers little passive income support.

Trading volumes: Significantly below 1-week average, reflecting lower momentum interest.

🎯 Ideal Entry Price Zone

For long-term accumulation, consider entering between

₹270–₹285 (Closer to support zone and under 200-DMA, where risk-reward is more balanced)

Avoid buying aggressively above ₹315 unless there's volume-backed breakout or earnings acceleration.

📈 Strategy for Existing Holders

🕒 Holding Period

If entry was below ₹285, JSW Infra merits a 4–6 year hold, riding on infrastructure growth and port/logistics expansions.

✂️ Exit Strategy

Partial exit near ₹340–₹355, especially if RSI nears 65 and volumes spike.

Full exit advisable if

ROCE drops below 10%

Debt rises toward 0.75+

PEG ratio crosses 1.5

EPS stagnates for 3+ quarters

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