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News Topical, Digital Desk : Stocks to Buy: JPMorgan has released a new report on India's ports and logistics sector. The brokerage has initiated coverage on Adani Ports and JSW Infrastructure and assigned an 'overweight' rating to both. The target price for Adani Ports is ₹1,944, representing a nearly 35% upside from the previous close. The target price for JSW Infrastructure is ₹310, implying an upside of up to 26%.
The port sector has strong long-term growth potential. High entry barriers, industry consolidation, and the pricing power of established companies are contributing to this growth. Capacity additions, increased trade volumes, and efficiency will drive further growth. JM Morgan says these stocks have significantly outperformed the Nifty 50 over the past three years (Adani Ports is up 70% and JSW Infrastructure is up 68%), but the sector's true strength has not yet fully reflected in share prices.
Adani Ports has the largest market share. The company is growing rapidly in logistics and expanding overseas. The brokerage expects revenue to grow at a CAGR of 17%, EBITDA at 15%, and PAT at 16% from FY2025 to 2028. This growth will be driven by scale, differentiated cargo, and an integrated logistics platform. JP Morgan has an 'Overweight' rating on Adani Ports and a target price of ₹1,944 per share. This indicates a potential upside of approximately 35% from current levels. The brokerage believes the company's strong market share and rapid expansion in the logistics business will support future growth. JSW Infrastructure has also been given an 'Overweight' rating, with a target price of ₹310 per share, which represents a 26% upside from its previous closing price. The company's capacity expansion plans and strong business relationships within the group are considered strengths. The brokerage says India's port and logistics sector is poised for strong long-term growth. Entry barriers are high, the industry is consolidating, and larger companies have strong pricing power. Growing trade, capacity expansion, and improved operational efficiency are expected to benefit companies. According to the report, Adani Ports is expected to record double-digit average annual growth in revenue and profits between fiscal years 2025 and 2028. JSW Infrastructure is pursuing a plan to expand its capacity to 400 million tons per annum by 2030. At market close on Wednesday, Adani Ports shares fell 2.29% to close at ₹1,436.60, while JSW Infrastructure closed 2.58% lower at ₹245.20. However, the brokerage expects strong upside for both stocks going forward.
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