Motilal Oswal has a “buy” rating on JSW Infra with a price target of ₹330 per share, which implies a potential upside of 39% from Thursday’s closing levels.

India’s port sector is managing 95% of the country’s export volumes and 70% of its export value, according to Motilal Oswal, who added that the sector is poised for significant growth going forward.

The brokerage expects cargo traffic to grow at a steady annual rate of 3% to 6% with stabilising utilisation levels of close to 55% in the medium-term.
“Container traffic growth is anticipated to grow between 4% to 7% annually over the next five years, bolstered by rising imports, declining freight costs, and a normalisation of global supply chains,” the Motilal Oswal note said.

Both JSW Infra and Adani Ports have outgrown the industry CAGR of 5% over financial year 2019-2024 through aggressive expansion, strategic acquisitions and integrated logistics solutions.

Motilal Oswal expects both JSW Infra and Adani Ports to grow double or triple the industry pace over the next five years, supported by continued organic and inorganic expansions and integrated logistics solutions.

“Both these companies are likely to gain market share,” Motilal Oswal said.

Out of the 14 analysts that have coverage on JSW Infra, 11 of them have a “buy” rating on the stock, while three have a “sell” rating.

Shares of JSW Infra are trading 5.4% higher at ₹251.15. The stock is down 30% from its post-listing peak of ₹360.