JM Financial has reaffirmed its bullish stance on a clutch of infrastructure and port stocks, flagging upside potential ranging from about 21% to over 50% in select names such as JSW Infrastructure, Bharat Heavy Electricals and Gujarat Pipavav Port.
In its latest set of company updates, the brokerage said order books remain strong and earnings visibility intact despite disruptions from the West Asia conflict and supply constraints. Larsen & Toubro and Adani Ports & Special Economic Zone also feature among its top calls, with steady execution and cargo resilience helping offset near-term pressures, while the broader theme across reports points to demand holding up even as global uncertainties linger.
JM Financial on Bharat Heavy Electricals: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Bharat Heavy Electricals Limited with a target price of Rs 345, implying an upside of 35.3%.
The brokerage expects the company to begin financial year 2027 with an order book of at least Rs 2,50,000 crore, supported by strong project pipeline in thermal and transmission segments. A recent policy move allowing imports of key inputs from China is expected to reduce costs and improve execution timelines.
However, the firm has cut its financial year 2026 revenue estimate due to supply shortages of industrial gases such as RLNG, LPG and helium, which could impact manufacturing activity in the near term.
“Given the urgency in capacity addition for both thermal and transmission projects, the exemption is a significant move in expediting project execution and is also margin accretive for BHEL,” JM Financial said.
JM Financial on Larsen and Toubro: ‘Buy’
JM Financial has retained its ‘Buy’ call on Larsen and Toubro with a target price of Rs 4,380, indicating a 21.2% upside.
The brokerage has trimmed earnings estimates to factor in the impact of the West Asia conflict, given that a significant portion of the company’s order book is linked to the region. Supply chain disruptions and cost pressures could weigh on margins in the near term.
Even so, JM Financial expects continued momentum in project execution and highlights potential opportunities from reconstruction activity and infrastructure spending in the region once conditions stabilise.
“Long term outlook for the Middle East business remains robust with no news of project cancellations or payment delays,” JM Financial said.
JM Financial on JSW Infrastructure: ‘Buy’
JM Financial has a ‘Buy’ rating on JSW Infrastructure with a target price of Rs 365, suggesting an upside of 51.5%.
The brokerage noted that operations at Fujairah were affected by drone attacks, but expects the company to meet its financial year 2026 earnings guidance, supported by strong group cargo volumes and growth in logistics.
It also pointed to the company’s plan to raise equity to meet minimum public shareholding norms, which is expected to keep leverage under control while supporting future capital expenditure.
“Despite disruptions from lower volumes at Fujairah or potentially lower limestone imports, these are materially offset by higher rates while the conflict lasts,” JM Financial said.
JM Financial on Adani Ports and Special Economic Zone: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Adani Ports and Special Economic Zone with a target price of Rs 1,725, implying a 24.5% upside.
The brokerage said the company has handled more than 500 million metric tonnes of cargo in financial year 2026, nearly meeting its earlier guidance despite disruptions linked to the West Asia conflict.
While container trade and marine operations have seen some pressure, higher transshipment volumes and diversification across cargo segments have helped offset the impact.
“We believe ADSEZ has managed to secure offsets potentially from transshipment volumes,” JM Financial said.
JM Financial on Gujarat Pipavav Port: ‘Buy’
JM Financial has reiterated its ‘Buy’ rating on Gujarat Pipavav Port with a target price of Rs 205, indicating an upside of 39.5%.
The brokerage noted that container volumes declined due to disruptions in the Strait of Hormuz, but other segments such as liquid cargo and roll-on roll-off traffic remained largely unaffected.
It expects profitability to improve sequentially as cargo mix improves and one-off costs seen in the previous quarter do not recur.
“Liquid and RoRo volumes remained strong, witnessing minimal impact from these disruptions,” JM Financial said.
Conclusion
JM Financial sees a market where near-term disruptions are being absorbed without derailing growth expectations.
The brokerage’s upside estimates suggest that several of these stocks still have room to move higher as earnings catch up and operating conditions stabilise.
Disclaimer: Investment returns and target prices mentioned are based on reports by JM Financial and are for informational purposes only. This coverage does not constitute an offer, solicitation, or a specific recommendation to buy, sell, or hold any securities. Given the inherent volatility of the infrastructure and port sectors, investors should conduct independent due diligence and consult a SEBI-registered financial advisor before making any investment decisions.
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