Maritime-related service provider receives LoI from Maharashtra Maritime Board for maintenance of multipurpose port
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 160.50 per share.
The Maharashtra Maritime Board (MMB) has awarded JSW Infrastructure Limited a Letter of Intent (LOI) to develop, operate, manage, and maintain an all-weather, multipurpose port at Murbe, Palghar District, Maharashtra. The project is based on the Design, Build, Own, Operate, and Transfer (DBOOT) model of Public-Private Partnership (PPP).
The LOI is subject to the fulfilment of certain terms and conditions stipulated therein and is valid for 24 months with an extension clause. The royalty payable is based on per metric ton and will be escalated in blocks of five years. The remaining terms and conditions will be governed by the Maharashtra Maritime Development Policy-2023 (MMDP 2023). Upon meeting the terms and conditions of the LOI, MMB will enter into a Concession Agreement (CA) with JSW Infrastructure Limited for the project, which will be valid for 70 years.
The proposed Murbe port is designed to be an all-weather, multi-cargo commercial port. It is strategically located near major highways and rail corridors, serving a vibrant hinterland with rising demands for cargo. The development of the port aligns with JSW Infrastructure Limited's growth plan to increase its capacity from 170 million tonnes per annum (MTPA) to 400 MTPA. This project is expected to significantly enhance economic activity and create a large number of jobs in the region.
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About the Company
JSW Infrastructure Ltd., founded in 2006, is a leading maritime services provider specializing in cargo handling, storage, and logistics. As a subsidiary of the JSW Group, it operates nine ports across India with a combined cargo handling capacity of 158.43 MTPA. The company handles a diverse range of cargo, including dry bulk, break bulk, liquid bulk, gases and containers. JSW Infrastructure is committed to sustainable practices and aims to expand its cargo-handling capacity to 400 MTPA by 2030.
The stock’s 52-week high is Rs 361 and its 52-week low is Rs 160.50. The company has a market cap of over Rs 66,000 crore with a PE of 58x, an ROE of 20 per cent and an ROCE of 17 per cent. The company has delivered good profit growth of 34.6 per cent CAGR over the last 5 years and its working capital requirements have reduced from 65.2 days to 46.1 days. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 160.50 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.