Adani Ports - Well Positioned To Surpass Revised Guidance Of FY24: Motilal Oswal

Motilal Oswal Report

Adani Ports and Special Economic Zone Ltd. reported a robust cargo volume of 382 million metric tonne in the 11 months of FY24. The management recently revised its FY24 cargo volume guidance to 400 mmt from ~380 mmt earlier. We expect Adani Ports to surpass the revised guidance.

Adani Ports has a diversified cargo mix along with sticky cargo and customer base.

We increase our volume estimates by 2-3% for FY24-26. Over FY24-26, we expect Adani Ports to register 10% volume growth and a compound annual growth rate of 15%/16%/18% in revenue/Ebitda/profit after tax.

With consistent outperformance in cargo volumes, we increase the target multiple to 17 times enterprise value/Ebitda (earlier 16 times) and reiterate our Buy rating with a revised target price of Rs 1,600.

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