Prabhudas Lilladher has issued a buy rating on JSW Infrastructure with a target price of ₹342 in its research report dated May 09, 2026. The brokerage maintains its positive outlook on the company despite revising the target price down from the earlier ₹358, citing valuation considerations while maintaining confidence in the stock's growth prospects. This recommendation comes as REITs and InvITs emerge as safer investment options in the current volatile market environment, with investors increasingly favoring predictable cash flows over traditional equity investments.
JSW Infrastructure delivered robust Q4FY26 operating performance driven by multiple revenue streams. The company reported recurring income of ₹750 million from H-energy on LT take or pay agreement for LNG cargo handling and forex gains of ₹170 million. Additionally, price hikes at South-West Port, Ennore & Mangalore Container Terminals contributed to the quarter's performance. Cargo volumes grew 1.3% year-on-year despite disruptions at Fujairah and cargo deferments caused by vessel shortages and higher freight costs, which were partly offset by strong growth at South-West and own ports.
The logistics segment demonstrated exceptional performance with 74% year-on-year revenue growth, led by improved Navkar utilisation and rail rakes business. This robust growth supported the company's consolidated EBITDA, reflecting the strength of JSWINFRA's diversified business model beyond traditional port operations. The logistics sector's strong performance aligns with broader market trends where REITs and InvITs are attracting investors seeking predictable returns amid market volatility.
JSWINFRA's overall ports capacity increased to 183 million tonnes per annum during the quarter following expansion at Ennore Coal Terminal and commissioning of the JNPA Liquid Terminal. Port EBITDA per tonne improved on higher contribution from own ports, indicating operational efficiency gains from the company's strategic infrastructure investments. This capacity expansion supports the company's positioning in the growing REIT and InvIT market where infrastructure assets are gaining investor interest for their stable cash flow characteristics.
Prabhudas Lilladher expects JSW Infrastructure to deliver strong 32% EBITDA CAGR over FY26-28E. The stock is currently trading at an EV of 22.0x/16.4x FY27E/28E EBITDA. The brokerage maintains its 'BUY' rating with the revised target price of ₹342, valuing the company at 19x EV of March 2028E EBITDA, reflecting confidence in the company's growth trajectory despite the target price adjustment. This valuation approach aligns with the broader REIT and InvIT market trend where investors are favoring visibility over velocity in uncertain market conditions.
