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JSW Infra Shares Downgraded By HSBC Over Capex Risks
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CNBC TV18•07-10-2026, 11:35
JSW Infra Shares Downgraded By HSBC Over Capex Risks
- •HSBC downgraded JSW Infrastructure Ltd. from Hold to Reduce with a target price of 310 rupees, citing potential downside risks.
- •The brokerage warned that a capex-led growth strategy could dilute return on invested capital and increase execution risks.
- •HSBC cut its EBITDA estimates for financial years 2027 to 2029 by 4 percent to 7 percent due to slower project ramp-ups.
- •Instead of JSW Infra, HSBC prefers Adani Ports and Special Economic Zone, giving it a Buy rating due to superior ROIC and valuation.
- •Despite the bearish downgrade, broader analyst sentiment remains largely positive with 15 out of 19 analysts maintaining a Buy rating.
Key Questions Answered
HSBC downgraded JSW Infrastructure to a "Reduce" rating from "Hold" with a target price of ₹310, citing risks from the company's capex-led growth strategy that could dilute its return on invested capital and increase execution risks.
HSBC prefers Adani Ports and Special Economic Zone (ADSEZ) over JSW Infra, rating it a "Buy" due to its superior Return On Invested Capital (RoIC) and valuation.
Despite HSBC's bearish call, the broader analyst view remains positive with 15 out of 19 analysts rating it a "Buy". The 12-month consensus target price stands at ₹369.42, indicating about 2% upside potential.
