JSW Infrastructure Limited is an ISO 9001:2015 certified integrated engineering, procurement and construction ('EPC') company with experience in design and construction of various infrastructure projects for the Central and State Government, autonomous bodies, and private bodies across 9 States and 1 Union territory in India. The principal business operations are broadly divided into four categories: (i) Water SupplyProjects ('WSP') (ii) Railway Projects (iii) Road Projects and (iv) Irrigation Network Projects. Company undertakes projects on EPC basis, with or without operation and maintenance services ('O&M'). The scope of the services includes detailed engineering of the project, procurement of key materials, and project execution at the sites with overall project management up to the commissioning of these projects. In addition, they also undertake operation and maintenance of projects in accordance with the contractual arrangements. As on July 15, 2023, they have fifty-one (51) on-going projects with total work awarded amounting to Rs 61,835.81 million, of which Rs 23,840.53 million worth of work has been executed and the remaining work amounting to Rs 37,995.28 million constitutes the Order Book. Out of the fifty-one (51) on-going projects, they are executing thirty-nine (39) projects independently while for the remaining projects they have entered into joint venture arrangements with other infrastructure and construction entities. The revenue from operations increased from Rs 4,857.31 million in FY 2020-21 to Rs 11,684.04 million in FY 2022-23 at a Compounded Annual Growth Rate ('CAGR') of 55.10%, while the profit for the year increased from Rs 189.82 million in FY 2020-21 to Rs 906.43 million in FY2022-23 at a CAGR of 118.52%. As per financial performance, JSW Infrastructure Limited has posted total income / net profits of Rs 1,678.26 Cr / Rs 284.62 Cr (FY21), Rs 2,378.73 Cr / Rs 330.45 (FY22), Rs 3,372.85 Cr / Rs 749.51 Cr (FY23) and Rs 918.24 Cr / Rs 322.20 Cr, So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 2.88 and average RoNW of 14.52% for last three fiscals. Issue is priced at a P/BV of 5.04 as per NAV of 23.62 as on 30.06.23. If we attribute latest earnings of FY23 on fully diluted equity post issue, then asking price is at a P/E of around 33.34, as per annualized FY24 earnings P/E is around 19.39 and as per TTM earnings P/E is 28.42, which looks fully priced. As per RHP, peers comparison is shown in above table. On BRLM's front, eight lead managers are associated with this IPO, and have handled around 180 IPOs in last three fiscals. JM Financial Limited : This is 33th IPO from this BRLM. From last 10 IPOs, 3 opened above issue price or at par on the day of listing. As of now, from last 10 IPOs, 2 is trading below issue price and remaining are trading above issue price or at par. (As on 20.09.2023) Axis Capital Limited : This is 41th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 20.09.2023) Credit Suisse Securities (India) Private Limited : This is 10th IPO from this BRLM. From last 10 IPOs, 2 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 3 is trading below issue price and remaining are trading above issue price or at par. (As on 20.09.2023) DAM Capital Advisors Limited : This is 15th IPO from this BRLM. From last 10 IPOs, 4 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 1 is trading below issue price and remaining are trading above issue price or at par. (As on 20.09.2023) HSBC Securities & Capital Markets Private Limited : This is 2nd IPO from this BRLM. From last 1 IPOs, all opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 1 IPOs, all trading below issue price and remaining are trading above issue price or at par. (As on 20.09.2023) ICICI Securities Limited : This is 38th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 20.09.2023) Kotak Mahindra Capital Company Limited : This is 34th IPO from this BRLM. From last 10 IPOs, one opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 20.09.2023) SBI Capital Markets Limited : This is 15th IPO from this BRLM. From last 10 IPOs, 4 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 7 is trading below issue price and remaining are trading above issue price or at par. (As on 20.09.2023)As per financials, JSW Infrastructure Limited has shown good growth, RoNW is 18.80% and P/E is respectively 33.34 and 19.39 as per FY23 and annualised FY24 earnings, which looks fully priced. Company is in business of providing maritime-related services including, cargo handling, storage solutions and logistics services. We may see good growth in this sector as GoI and State Governments are focused to increase export. Performance of BRLM is good. Also after around 13 years a new IPO is coming from JSW group. So, we give SUBSCRIBE rating for this IPO for long term investment. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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