Adani Ports and Special Economic Zone Ltd. is gearing up for sustained growth as new port additions and strategic expansions position it at the forefront of India's trade and logistics boom. Both Jefferies and CLSA remain bullish on APSEZ, citing the aggressive increase in market share and promising future volume growth fueled by new acquisitions and logistics expansions.
Brokerages expect Adani Ports to benefit from both domestic and international port additions.
Jefferies holds a 'buy' rating on Adani Ports, focusing on the company's plans for a two to three times growth in volume relative to India's overall port traffic. This growth is driven by the expansion into new markets, like the Tanzania operations, and continued investments in domestic capacity.
Jefferies has hiked the target price on the stock from Rs 1,855 to Rs 1,910, implying a potential upside of 37%.
Jefferies expects that "the logistics potential is the sweetener," as APSEZ deepens customer reach with expanded rail and warehousing infrastructure, promising an end-to-end service network.
CLSA maintains an 'outperform' rating, echoing the sentiment on Adani Ports' strategic positioning, particularly as the top container handler in India. Mundra Port, APSEZ's flagship, has shown impressive 18% traffic growth year-over-year, outperforming national averages.
The brokerage has a target price of Rs 1,764 on the stock, implying a potential upside of 28%.
“Adani Ports remains a compelling play on India's growth, consistently delivering traffic and EBITDA gains,” underscoring the success of its M&A-driven portfolio expansion, CLSA said.
Both brokerages are optimistic about APSEZ's ability to leverage its expanding logistics network, with a long-term target of 1 billion metric tonne in cargo volume by 2030, enhancing both profitability and competitive advantage. The company's ongoing additions, including Gopalpur and Vizhinjam ports, are expected to further strengthen its position in the global logistics landscape.
Adani Ports share price rose as much as 2.73% during the day to Rs 1,410.15 apiece on the NSE. It has risen 78.52% in the last 12 months and 36.77% on a year-to-date basis.
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