The brokerage noted, “We find investor interest elevated in Adani Ports (ADSEZ) and JSW Infra (JSWI). Investors appreciate ADSEZ’s diverse asset base and logistics expansion plans, given that the stock at 14x Sep’26E EV/EBITDA is attractive. Investors like JSWI’s growth story, led by the company’s / group’s capacity expansion plans.”
On Adani Ports, Jefferies highlighted that FY26e volume growth amid the tariff-related uncertainties and potential impact on coal volumes (33% of FY25), with muted power demand growth (flat YoY in FY26 till date), was discussed.”
The management is guiding for 12–14% YoY volume growth (Jefferies estimates 11%), with growth expected to be front-loaded as new ports are commissioned in the second half of FY25. Jefferies added that “domestic ports’ Ebitda margins have been surprisingly positive in the past two quarters, and investors are keen to find the threshold margin.”
The report also pointed to investor interest in potential capital allocation moves, noting that “logistics expansion plans are appreciated, and investors agree that may not be looked at in Silos, given potential synergies with ports. Potential dividend/buyback with reduction in leverage (JEFe 1.1x Net D/EBITDA in FY29E vs. 2.3x in FY25) can be a re-rating event.”
Another discussion point was the possible redesignation of Gautam Adani from Executive Chairman to Non-Executive Chairman.On JSW Infrastructure, Jefferies underscored that firm visibility on capacity expansion plans from 177 mnt now to 355 mnt (vs. 400mnt target by FY30E) is a key positive.Investors also welcomed the company’s approach of leveraging group capacity expansion to drive growth.
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However, valuation remains a key talking point, with the report noting: “The stock trades at an 86% premium to ADSEZ’s 1-year forward rolling EV/EBITDA (vs. 63% average since listing), implying limited room for execution delays from JSWI and JSW Steel.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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