Adani Ports Q2 Results Review - Inline Performance; Outlook Remains Bright; Reiterate 'Buy': Motilal Oswal

Motilal Oswal Report

The Q2 FY25 performance was in line with our estimates. Adani Ports and Special Economic Zone Ltd. is expected to record 1.5-2.0 times of India’s cargo volume growth, driven by market share gains and increased capacity.

Further, the logistics business will serve as a value addition to the domestic port business, with a focus on enhancing last-mile connectivity. We largely retain our estimates for FY25/FY26/FY27. We expect Adani Ports to report 10% growth in cargo volumes over FY24-27. This would drive a compound annual growth rate of 15%/15%/21% in revenue/ Ebitda/profit after tax over FY24-27.

We reiterate our Buy rating with a revised target price of Rs 1,780 (premised on 18 times on Sep-26 enterprise value/Ebitda).

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