Jefferies, a global investment banking firm, has reported heightened investor interest in two major players in the Indian port and infrastructure sector: Adani Ports and Special Economic Zone (ADSEZ) and JSW Infrastructure (JSWI). The report, based on recent investor feedback, highlights the strengths and concerns surrounding both companies.

Adani Ports: Diverse Assets and Expansion Plans

Investors have shown appreciation for Adani Ports' diverse asset base and its ambitious logistics expansion plans. The company's stock is currently trading at 14x Sep'26E EV/EBITDA, reflecting market confidence in its growth potential.

Key highlights for Adani Ports include:

• Management guidance of 12-14% year-over-year volume growth
• New ports expected to be commissioned in the second half of FY25
• Positive performance in domestic ports' EBITDA margins over the past two quarters
• Potential for dividends or share buybacks as leverage reduces

Adani Ports' financial outlook appears promising, with leverage expected to decrease from 2.3x in FY25 to a projected 1.1x Net Debt/EBITDA ratio by FY29.

JSW Infrastructure: Capacity Expansion and Valuation Concerns

Investors have welcomed JSW Infrastructure's clear visibility on capacity expansion plans. The company aims to increase its capacity from the current 177 million tonnes to 355 million tonnes.

However, valuation concerns persist for JSWI:

• JSWI currently trades at an 86% premium to ADSEZ's 1-year forward rolling EV/EBITDA
• This premium is significantly higher than the 63% average observed since JSWI's listing

Investor Sentiment and Market Dynamics

The Jefferies report underscores the growing interest in India's port and infrastructure sector. Both Adani Ports and JSW Infrastructure are attracting attention for their growth strategies and market positioning.

Adani Ports

• Diverse asset base and expansion into logistics services are key drivers of investor interest
• Improving financial metrics and potential for shareholder returns add to its appeal

JSW Infrastructure

• Garnering interest for ambitious capacity expansion plans
• Faces scrutiny over its valuation, with a significant premium compared to Adani Ports

As the Indian infrastructure sector evolves, both companies are likely to remain under close watch by investors and analysts. The contrasting strategies of established diversity (ADSEZ) versus rapid expansion (JSWI) offer insights into the different approaches in India's competitive port and infrastructure landscape.

Adani Ports and Special Economic Zone Limited (APSEZ), India's largest private port operator, is set to participate in the CLSA Investors' Forum on September 10 through in-person interactions in Hong Kong. This engagement comes on the heels of the company's robust quarterly performance and growing market presence.

Strong Quarterly Results

APSEZ reported impressive financial results for the first quarter:

The company's performance demonstrates resilience and growth in a dynamic market environment.

Operational Highlights

• Cargo Volume: APSEZ handled 121 MMT of cargo, registering an 11% growth primarily driven by container traffic.
• Market Share:
  • All-India cargo market share increased to 27.8% from 27.2% in the previous year.
  • Container market share stood at 45.2%, down from 45.9% in the previous period.

Investor Engagement

According to the company's regulatory filing, APSEZ will participate in the CLSA Investors' Forum on September 10 in Hong Kong. The forum provides a platform for the company to interact with investors and analysts, potentially discussing its recent performance and future strategies.

Kamlesh Bhagia, Company Secretary of APSEZ, confirmed the scheduled interaction in a communication to the stock exchanges. The company has also made its presentation for the meeting available on its official website, www.adaniports.com , ensuring transparency and easy access to information for all stakeholders.

As APSEZ continues to strengthen its position in the port and logistics sector, this investor forum presents an opportunity for the company to showcase its growth trajectory and operational efficiency to a global audience. The strong quarterly results and increasing market share are likely to be key talking points during these interactions.