BP EQUITIES: Subscribe

BP EQUITIES, in its note on the JSW Infra IPO, says the company has a track record of sustained revenue/EBITDA/PAT performance, which grew at a CAGR of 41.2%/42.1%/62.3% during FY2021-23 period.

"On the upper price band, the issue is valued at a P/E of 29.7x based on FY2023 earnings which we feel is fairly valued. We, therefore, recommend a “Subscribe” rating for the issue."

Among risks, it says the company relies on concession and license agreements from government agencies and concession authorities to operate and grow its business. A breach of terms could lead to the termination of agreements.

Mehta Equities: Subscribe

Mehta Equities has also recommended investors “SUBSCRIBE” to JSW Infra IPO offer with a long-term perspective. "Being part of the reputable JSW Group grants JSW Infra vital support and synergies with the group's growing businesses. We think with the strong track record of profitability and growth, JSW Infra is well-positioned to benefit from the continued growth of the Indian economy."

Based on annualised FY24 earnings and fully diluted post-IPO paid-up capital, JSW Infra is asking price a P/E of 19x on the consolidated basis which seems the valuations are reasonably priced when compared to peers which are trading in the range of ~28-30x, it adds.

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