Synopsis:
Kotak Institutional Equities has maintained Adani Ports & Special Economic Zone Ltd. to a buy rating, raising the target price to Rs. 1,900, implying a potential upside of 31.9 percent from the previous close. The brokerage highlighted the company’s fast growth, new assets, and East Coast expansion as key drivers of earnings and volume growth.
Adani Group stock is in focus after Kotak Securities raised its price target, signaling strong investor interest. The brokerage highlighted rapid value creation, an expanding port portfolio, and high utilization at newly commissioned terminals. Analysts expect steady volume growth, particularly at Mundra and Krishnapatnam, supporting robust earnings visibility.
Adani Ports & Special Economic Zone Ltd. has a market cap of Rs. 310,411.97 crore. The stock opened at Rs. 1,442.05, reached a high of Rs. 1,450.25, and the previous close was Rs. 1,441.30, marking an intraday increase of 0.63 percent.
What’s the News?
Kotak Institutional Equities has revised its price target for Adani Ports to Rs. 1,900 from Rs. 1,840, citing the company’s rapid growth, robust value creation, and expanding port network. This implies a potential upside of 31.9 percent from the previous close of Rs. 1,441.30.
The brokerage maintains a buy rating on the stock, highlighting contributions from newly commissioned assets and the East Coast acquisitions, which enhance growth visibility.
Kotak projects steady volume expansion across APSEZ’s terminals, noting particularly strong performance potential for Mundra and Krishnapatnam transshipment facilities. The newly commissioned Mundra terminal achieved capacity utilization above 70 percent within the first few months, reflecting high operational efficiency. Expansion on the East Coast with Gangavaram and Krishnapatnam terminals is viewed as a strategic advantage, supporting regional cargo growth.
The report noted that these assets have a sizable 1.5 million TEU transshipment potential and are expected to benefit from the uptick in regional cargo movement. Kotak also raised EBITDA estimates by 3 percent to account for higher volumes, projecting 12 percent, 18 percent, and 17 percent CAGR in revenue, EBITDA, and profit, respectively, over the three financial years through March 2028. The brokerage noted the stock trades at 14.5 times one-year forward EV/EBITDA and remains well positioned to capture India’s rising trade flows.
Financial Snapshot
Quarter-on-Quarter (QOQ): Sales rose from Rs. 8,488 crore to Rs. 9,126 crore, a growth of 7.5 percent. Operating profit increased from Rs. 5,006 crore to Rs. 5,495 crore, up 9.8 percent. PBT grew from Rs. 3,532 crore to Rs. 3,848 crore, an increase of 8.9 percent, while net profit rose from Rs. 3,023 crore to Rs. 3,311 crore, up 9.5 percent.
Year-on-Year (YOY): Sales jumped from Rs. 7,560 crore to Rs. 9,126 crore, a rise of 20.7 percent. Operating profit increased from Rs. 4,739 crore to Rs. 5,495 crore, up 16 percent. PBT grew from Rs. 3,593 crore to Rs. 3,848 crore, an increase of 7.1 percent, while net profit rose from Rs. 3,107 crore to Rs. 3,311 crore, up 6.6 percent.
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About the Company
Adani Ports & Special Economic Zone Ltd. is India’s largest port developer and operator by cargo volume, with an annual handling capacity of approximately 633 MMT. The company started operations with Mundra Port in Gujarat under a 30-year concession with the Gujarat Maritime Board.
Since then, APSEZ has grown to 15 ports/terminals, including Mundra, Dahej, Hazira, Dhamra, Kattupalli, Krishnapatnam, Mormugao, Tuna, Dighi, Gangavaram, and Ennore. The ports handle all types of cargo, including dry bulk, liquid bulk, crude, and containers. Beyond ports, APSEZ is a multi-product SEZ developer at Mundra, Dhamra, and Kattupalli and has a growing logistics network through its SPVs, operating container trains and inland container depots to become an integrated transport utility.
Written By Manan Gangwar
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