Adani Ports Gets Kotak Target Price Hike On Outperformance Prospects
Volume estimates have been increased by 5–6% for fiscals 2026 and 2027.
Kotak Institutional Equities has hiked the target price of Adani Ports & Special Economic Zone Ltd. to Rs 1,650 apiece from Rs 1,550 earlier, implying a potential upside of 17.5% from the previous close.
Adani Ports continues to outperform despite the weak start to the year for the market. Such outperformance can continue for long, with a boost to margins, according to a note dated June 13.
The Adani Group company has bought, and thus taken out, most existing non-major concessions available where significant capacity additions can happen, according to Kotak. The brokerage has maintained its 'buy' rating on the stock.
The company grew its volumes by 14% year-on-year in the April–May period versus the Indian market's low-to-mid single-digit growth. However, the addition of its latest assets would further see an increase in the compensation, it said.
Adani Ports has the potential of growing its existing capacity by around five to six times over the course of time as compared to its peers, whose potential to expand two times will require them to add assets at higher capital costs, Kotak said.
Volume estimates have been increased by 5–6% for fiscals 2026 and 2027, with a lower 2% increase in fiscal 2025 volumes reflecting the impact loss of two months of volume of the Gangavaram port in Visakhapatnam. The asset is expected to return to year-on-year levels of volumes in June.
However, key upside risks may include value creation from recent incremental investments in logistics and ports.
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