Adani Ports Target Price Raised By Citi On Healthy Guidance, Stock Remains Top Pick
The port operator's net profit increased 77% to Rs 2,014.8 crore in the March quarter.
Citi Research has raised the target price of Adani Ports and Special Economic Zone Ltd., saying that the strong results in the fourth quarter of financial year 2024 and a healthy guidance makes the stock the brokerage's top pick despite its recent outperformance.
Citi maintains a 'buy' rating and raised the target price to Rs 1,782 apiece from Rs 1,564 earlier, implying a potential upside of 33.1% from the previous close. The brokerage also has a positive catalyst watch open.
"High quality and dominant underlying business, attractive valuations with the stock trading 16 times EV/Ebitda and 26 times P/E on FY26, and resolution of most group-related issues make Adani Ports particularly attractive and as a result, it remains our top pick despite outperformance," Citi said.
In the March quarter, India's largest private port operator's net profit increased 76.87% to Rs 2,014.8 crore in line with estimates, as against Rs 1,139.07 crore in the year-ago period, according to an exchange filing on Thursday. Consolidated revenue rose 18.96% to Rs 6,896.5 crore, compared with Rs 5,796.85 crore, meeting estimates.
Citi said the results also show strong traction in the logistics business, with a 12% market share in container train operations.
"Strong capex planned in FY25 not only underlines strong cash flows and balance sheet but also is an indication of intent to accelerate growth over the medium term," it said.
The company's share price closed 1.05% higher at Rs 1,338.80 on the NSE Thursday. It has risen 30.7% on a year-to-date basis and 81.2% in the last 12 months.
Disclaimer: NDTV is a subsidiary of AMG Media Networks Ltd., an Adani Group Company.
