At a Glance
JITF Infra Logistics Ltd is part of the prestigious O.P. Jindal Group, and operates in waste management, water infra, and railway wagon manufacturing. But behind the shiny group name lies a mountain of debt, loss-making years, and some mysterious “other income” magic. Is this a turnaround or a classic PSU-in-private-clothing story?
1. Introduction with Hook
What do you get when you mix garbage, freight wagons, Jindal branding, and ₹3,500 Cr debt?
Answer: JITF Infra Logistics Ltd — a company that smells like potential… or just smells. 🚮
The stock is down 54% from its highs, and the business just posted back-to-back quarterly profits for the first time in a decade. But is this real recovery or a mirage made of “other income”?
2. WTF Do They Even Do? (Business Model)
- 🌆 Urban Infrastructure: Builds and operates waste processing plants and urban water infra.
- 💧 Water Infra: Sewage treatment, desalination, recycling — basically all the stuff you don’t want to see but need daily.
- ♻️ Municipal Solid Waste to Energy: Converts garbage into usable energy.
- 🚃 Rail Freight Wagons: Via its subsidiary Jindal Rail Infrastructure (recently divested), manufactured railway wagons.
- 🛠️ Recent Shift: Focus now on asset-light models, having sold off the rail infra biz in FY25.
Verdict: Diversified operations, but too spread out and none of them are high-margin monopolies.
3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue | ₹3,284 Cr | ₹2,265 Cr |
| Operating Profit | ₹479 Cr | ₹405 Cr |
| Net Profit | ₹91 Cr | ₹145 Cr |
| OPM | 15% | 18% |
| ROCE | 16% | 12% |
| ROE | Still Negative | Still Missing |
🔍 Insights:
- Revenue fell in FY25 but margins expanded.
- The company posted a full-year profit after a decade of red ink — but a lot came from other income (₹216 Cr in FY25).
4. Valuation – Is It Cheap, Meh, or Crack?
- 🧮 Market Cap: ₹997 Cr
- 📉 P/E: Not available (due to inconsistent EPS)
- 💣 Book Value: ₹-199 — yes, negative 💀
- 🧾 Fair Value Range: ₹180–₹240
- Based on sustainable EPS of ₹12–₹16 post other income normalizing
- Assigning a P/E range of 15x on normalized operations
Verdict: Priced like a meme stock. Don’t let the “Jindal” tag fool you — this isn’t JSW Steel.
5. What’s Cooking – News, Triggers, Drama
- ✅ Divestment of Jindal Rail Infra completed in FY25.
- ✅ Quarterly profits seen in last 4 quarters — a first.
- ⚠️ Contingent liabilities of ₹2,985 Cr – more than 3x market cap.
- 💸 High “Other Income”: ₹216 Cr in FY25 – not sustainable.
Trigger to watch: If restructuring committee can demerge solid assets or bring in new partners in waste-to-energy.
6. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Borrowings | ₹3,504 Cr |
| Net Worth | ₹-511 Cr |
| Fixed Assets | ₹1,929 Cr |
| CWIP | ₹2 Cr |
- D/E? Bro please, there’s no equity 😬
- Negative reserves for over 8 years.
Verdict: Looks more like an NPA recovery candidate than a clean infra play.
7. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF |
|---|---|---|---|
| FY24 | ₹246 Cr | ₹-401 Cr | ₹241 Cr |
| FY25 | ₹185 Cr | ₹187 Cr | ₹-406 Cr |
- Finally generating positive operating cash flow, but still financing capex via equity or asset sale.
- FY25 saw some repayment/deleveraging post rail business exit.
Caution: Sustainability depends on debt restructuring.
8. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM | 18% |
| ROCE | 12% |
| ROE | N/A |
| Interest Coverage | < 1x |
| Debt/Equity | 🤷🏽 (No equity) |
- Interest cost of ₹352 Cr on operating profit of ₹405 Cr — that’s walking on a financial tightrope.
9. P&L Breakdown – Show Me the Money
FY25 Revenue (₹2,265 Cr):
- ~₹1,200 Cr – Waste-to-energy + infra
- ~₹800 Cr – Discontinued rail segment
- ₹216 Cr – “Other income” (rentals, one-offs, or black magic?)
Net Profit of ₹145 Cr = boost from discontinued ops + other income.
10. Peer Comparison – Who Else in the Game?
| Company | OPM | ROCE | P/E | D/E |
|---|---|---|---|---|
| Va Tech Wabag | 12.8% | 20% | 31x | Moderate |
| ION Exchange | 10.7% | 22% | 38x | Low |
| Enviro Infra | 25.1% | 31% | 22x | Low |
| JITF Infra | 18% | 12% | N/A | LOL |
Verdict: JITF is not in the same league. The others are profitable and carry real equity.
11. Miscellaneous – Shareholding, Promoters
- 👑 Promoters: 63.03% – stable
- 🌍 FIIs: Shrinking – from 4.3% to 2.1%
- 👥 Public: Rising – from 32.6% to 34.8% (retail is always last in)
Recent Activity:
- CFO change in Feb 2025
- Restructuring committee formed
- Consolidation of subsidiaries underway
12. EduInvesting Verdict™
🧹 JITF Infra = PSU soul in a private wrapper.
- Debt mountain ⛰️
- Margins improving ✅
- But other income masking reality 🪄
- Promoters not reducing stake = good
- Fair value range: ₹180–₹240, stock at ₹386 = already pricing in perfection
Unless debt is refinanced or a magic EBITDA appears, this remains a “turnaround trap” more than a turnaround story.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: JITF Infra Logistics, Jindal Group, Waste-to-Energy, Infrastructure Stocks, Railway Manufacturing, Debt Trap, Turnaround Stocks, SEBI LODR, EduInvesting
