Maritime-related service provider approves capex of Rs 2,359 crore for capacity expansion; detail inside!

The stock gave multibagger returns of 124.25 per cent from its 52-week low of Rs 141.75 per share.

JSW Infrastructure Limited, a part of the JSW Group and India’s second-largest private commercial port operator, today approved a capex of Rs 2,359 crore for the capacity expansion at its Jaigarh and Dharamtar Port.  

As a part of the company’s FY2030 growth plan to increase capacity to 400 Million Tonnes Per Annum (MTPA) from the existing capacity of 170 MTPA, the Board of the respective subsidiary companies has approved a total capacity expansion plan of 36 MTPA (21 MTPA at Dharamtar and 15 MTPA at Jaigarh). The capex plan includes mechanical, civil and electrical work for the new berths and additional infrastructure, such as railway siding for Jaigarh Port, to boost third-party cargo movement.

The expansion will increase the overall capacity of Jaigarh Port to 70 MTPA from the current 55 MTPA, and Dharamtar Port to 55 MTPA from the current 34 MTPA. This expansion primarily aims to cater to the increased cargo volume of the anchor customer on the back of the proposed 5 MTPA steel-making facility at Dolvi, Maharashtra. The expansion at both ports is expected to generate an additional cargo handling volume of approximately 27 MTPA. Construction at both ports is anticipated to be completed by March 2027.

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.

On Monday, shares of JSW Infrastructure Ltd gained 1.47 per cent to Rs 311.65 per share with an intraday high of Rs 317.65 and an intraday low of Rs 303. The company's shares saw a spurt in volume by more than 1.25 times on BSE. The stock’s 52-week high is Rs 361 and its 52-week low is Rs 141.75. The company has a market cap of over Rs 65,000 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 124.25 per cent from its 52-week low of Rs 141.75 per share. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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