This newly listed stock hits 10% upper circuit on strong Q2; up 59% from IPO price

Shares of JSW Infrastructure were locked in the 10% upper circuit on the BSE on Monday after the Sajjan Jindal-led JSW Group company reported strong earnings in the September quarter of the current fiscal. The largecap stock, which made a stellar market debut on October 3, 2023, touched a fresh all-time high of ₹188.75 today, rising nearly 59% in a month against its IPO price of ₹119. The stock of the country's second largest commercial port operator in terms of cargo handling hit its lowest level of ₹141.75 on its listing day.

Early today, JSW Infra stocks opened higher at ₹179.05, up 4.3% against Friday’s closing price of ₹171.60 on the BSE. Extending early gains, the stock gained as much as 10% to settle at ₹188.75, while the market capitalisation rose to ₹39,595.5 crore. On the volume front, there was surge in buying as 29.3 lakh shares changed hands over the counter as compared to two-week average volume of 3.45 lakh stocks.

For the July-September quarter of FY24, JSW Infra reported a growth of 85% in profit at ₹256 crore, compared with ₹138 crore in the corresponding period last year. 

The revenue from operations of JSW Group company rose 25% to ₹895 crore as against ₹696 crore in the year-ago period.

On the operating front, JSW Infra recorded an EBITDA (earnings before interest, taxes, depreciation, and amortization) of ₹499 crore in Q2FY24, up 33% as compared to same period last year. EBITDA margin stood at 54% during the quarter under review.

The total cargo handled volumes by JSW Infra stood at 23.7 million tonnes in Q2 FY24, registering a growth of 27 per cent year-on-year.

In a separate development, JSW Infra's board approved the acquisition by JSW Terminal (Middle East) FZE (a wholly owned subsidiary of the company) of Marine Oil Terminal Corp, a company incorporated in Marshall Island along with its Fujairah branch from MPT Commodities Limited, British Virgin Islands at a value of $187 million. The Fujairah branch is operating a liquid storage terminal with a capacity of 4,65,000 cubic meters (cbm) and situated at Fujairah Oil Industry Zone (FOIZ) in Fujairah.

On completion of the transaction, Marine Oil Terminal will become the step-down subsidiary of the company.

The acquisition is part of the company’s strategy to expand its cargo handling capacity and cargo volume throughput in all types of cargoes including liquid and container. Considering the same, the liquid storage terminal at Fujairah would help the company to achieve its growth and expand its footprint in liquid cargo, it said in a release.

Last month, JSW Infra made debut on stock exchanges after raising ₹2,800 crore via IPO, which was subscribed over 37.37% on broad-based response from qualified institutional buyers and non-institutional investors. This was the third company of the conglomerate that got listed on the domestic bourses after JSW Steel and JSW Energy after a long gap of 13 years.

Established in 2006, JSW Infrastructure provides maritime-related services such as cargo handling, storage solutions, and logistics support services. Sajjan Jindal Family Trust owns a 90.91% stake in the port-related infrastructure company, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex hold remaining 9.08% shares in the firm. Post listing, promoters’ stake in the company will come down to 85.62%.

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