JSW Infrastructure Limited

Industrials — Marine Shipping · NSE

₹341.00+₹6.35 (+1.90%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of JSW Infrastructure Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JSW Infrastructure Limited, an infrastructure development company, operates commercial ports in India and internationally. It operates in two segments, Port Operations and Logistic Operation.

IndustryMarine Shipping

SectorIndustrials

Employees1,428

Annual revenue₹5,321 Cr

How does it make money?

Turns over ₹5,321 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹55 left at the operating level before interest, tax and depreciation. Each of its 1,428 employees supports ₹3.73 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin54.9%

Net margin28.6%

Revenue / employee₹3.73 Cr

Who are its competitors?

The closest listed comparisons in its industry are ADANI PORT & SEZ LTD, LARSEN & TOUBRO LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

What is its competitive advantage?Little sign of one

Returns on capital of 12.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE12.0%

ROE14.0%

Peer median ROE15.2%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 52.9% and earnings to grow about 51.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+52.9%

Est. earnings growth+51.2%

Analysts17

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +69% while net margin moved +22% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+69%

Margin effect+22%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 48.1x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 49.5x
✗ P/B of 6.54x is a steep premium to book

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

48.1x

3Y Median

49.5x

38 monthly readings · mean 50.2x · range 33.5x–84.5x

Sector Median

30.0x

median of 2 sector peers

🟡Currently trading close to its 3y median of 49.5x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 60% above the peer median of 30.0x.

vs. its own history

Fair

49.5x median over 38 months · -3%

vs. sector peers

Expensive

30.0x median of 2 peers · +60%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

48.1x

P/B

6.54x

EV/EBITDA

29.1x

PEG

1.77

Dividend Yield

0.26%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 56.5% to 54.9% over 3 years.
Debt is rising
Total debt is up 51% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 18.5% to 14.0% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 128% against revenue growth of 69% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 51% over 3 years, from ₹4,568 Cr to ₹6,899 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 128% against revenue up 69% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹470 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 56.5% to 54.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 128% against revenue up 69%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 60% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 18.5% to 14.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 19.0% CAGR
Latest reported year was 18.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 53%✓ 54.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹470 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 12.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹78,947 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

48.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.54x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹7.09

Profitable

Profitable on a per-share basis

ROE

14.0%

Moderate

Moderate capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

18.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-10.3%

Falling

Profits are shrinking

Dividend Yield

0.26%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹470 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹341

P/E (Forward)

30.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

35.2%

Good

Healthy core-business profitability

Net Margin

26.6%

Good

Strong bottom-line conversion

Current Ratio

2.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

350.6 / 342.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,155 Cr	₹3,763 Cr	₹4,471 Cr	₹5,321 Cr	+19.0%
EBITDA	₹1,783 Cr	₹2,190 Cr	₹2,488 Cr	₹2,920 Cr	+17.9%
EBITDA Margin	56.5%	58.2%	55.6%	54.9%	—
PAT (Net Profit)	₹740 Cr	₹1,156 Cr	₹1,503 Cr	₹1,523 Cr	+27.2%
EPS	₹4.01	₹5.88	₹7.19	₹7.28	+22.0%
ROE	18.5%	14.4%	15.5%	14.0%	—
ROCE	12.4%	13.3%	13.5%	12.0%	—
Total Debt	₹4,568 Cr	₹4,758 Cr	₹5,042 Cr	₹6,899 Cr	+14.7%
Free Cash Flow	₹1,518 Cr	₹1,555 Cr	₹25 Cr	-₹470 Cr	—

🟢 Revenue has grown at 19.0% a year over 3 years.

🟢 EBITDA has grown at 17.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 56.5% to 54.9% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 27.2% a year over 3 years.

🟢 EPS has grown at 22.0% a year over 3 years.

🔴 ROE has fallen from 18.5% to 14.0% over 3 years (-4.5 pts).

🟡 ROCE has held roughly flat at 12.0% over 3 years.

🔴 Total Debt has grown at 14.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1,518 Cr to -₹470 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20,358 Cr

Total Liabilities

₹8,666 Cr

Total Debt

₹6,899 Cr

Cash & Equivalents

₹798 Cr

Operating Cash Flow

₹2,022 Cr

Capex

-₹2,492 Cr

Shareholding (proxy)

Institutional Holding

16.0%

Insider Holding

74.1%

Corporate Actions

Dividend Rate

₹0.9

Ex-Dividend Date

18 Jun 2026

Analyst Consensus

Recommendations

14 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹378

+10.9% vs CMP

Target Range

₹310 – ₹410

Peer Comparison

Company	P/E	ROE
ADANI PORT & SEZ LTD	29.9x	14.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

2 mixed4 general

Stock to buy today: JSW Infrastructure (₹367.85) – BUY

BusinessLine, 23 Sept

JSW Infra rallies 5%, nears record high; ICICI Direct sees more upside

Business Standard, 13 Jul

JSW Infrastructure Ltd. (JSWINFRA) Share Price Rise Streak: 2nd Straight Session

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

JSW Infrastructure's (NSE:JSWINFRA) Profits May Not Reveal Underlying Issues

Simply Wall Street, 06 Jul

JSW Infrastructure Shares rally 8%. Reasons explained

India Infoline, 24 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why JSW Infrastructure Share Price is Rising

Equitymaster, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.3/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.9/15

🔴ValuationDemanding5.3/15

🟡RiskModerate5.8/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year19.0% CAGR
✓EBITDA margin holds above 53%54.9%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹470 Cr
✓ROCE stays above 9%12.0%