Adani Ports and Special Economic Zone Ltd, a flagship company of the Adani Group, has emerged as India’s largest integrated port and logistics company. Over the past five years, the stock has delivered a remarkable return of approximately 350% to its investors, showcasing its strong financial performance, strategic acquisitions, and expanding footprint across India’s coastline. Below is the analysis of the company.
Overview
Adani Ports and Special Economic Zone Ltd, a part of the globally diversified Adani Group, has evolved from a port company to an Integrated Transport Utility providing end-to-end solutions from its port gate to customer gate. From the Ports to the Logistics Platform, the company has port facilities, integrated logistics capabilities, including multimodal logistics parks, Grade A warehouses, and industrial economic zones, putting it in an advantageous position as India stands to benefit from an impending overhaul in global supply chains. The company’s vision is to be the largest ports and logistics platform in the world in the next decade.
With a market capitalization of Rs. 2,82,351 crores, the shares of Adani Ports are trading at the CMP of Rs. 1365.6. The stock has given staggering returns of 350 percent in the past 5 years, despite its high volatility due to controversies
The company is currently trading 17.5 percent less than its 52-week high of Rs. 1,621.40. And the company’s previous 52-week low stands at Rs 995.65; on average, the stock has given a Return of 35.89 percent CAGR in the past 5 years.
Port Size
The company is the largest port developer and operator in India, with 7 strategically located ports and terminals on the west coast and 8 ports and terminals on the East coast, representing 27% of the country’s total port volume, providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland in total the company has 15 ports and 30 terminals with capacity of 633 Million Metric Tonnes across cargo handled in all the ports
The company is also building its international presence where The company is also developing a transshipment port at Colombo, Sri Lanka, and operates the Haifa Port in Israel and Container Terminal 2 at Dar Es Salaam Port, Tanzania. And the company has an O&M contract in Australia’s Abbot Point, North Queensland.
Prospects and guidance
The company is targeting a Targeting 1,000 Million Metric Tonnes cargo volumes by 2030, out of which 850 Million Metric Tonnes domestic cargo by 2030 at a growth CAGR of 15 percent. The company has set a target of selected international presence along the East-West trade corridor. Targeting 150 Million Metric Tonnes by 2030. The company is also focused on continuing to build out the third-party marine business. The company also expects 3x+ revenue growth by FY29 is targeting marine opportunities in the Middle East, Africa & South Asia(MEASA) waters
In FY 26 The company is expecting a revenue between Rs 36,000-38,000 crores, and the EBITDA is expected to be around Rs 21,000-22,000 crores and the company is planning a capex plan of Rs 11,000-12,000 crore the port cargo volume is expected be be around 505-515 MMT the Trucking revenue is expected to grow by grow 3x-4x which was around 428 Cr in FY25 And the Marine revenue will grow 2x which was Rs 1,144 Crore in FY25.
Business line-wise revenue breakup
In Q4FY25 from its domestic ports, the company has a revenue of Rs 6,062 crores from its international ports the company has a revenue of Rs 901 crores, and from the marine operations, the company has a revenue of Rs 361 crores from SEZ & port development the company has a revenue of Rs 136 crores and from Logistics the revenue stands at Rs 1,030 crores
Financials and ratios
The company’s Revenue grew by 21.8 percent YoY from Rs. 7,199.94 Crores in Q4FY24 to Rs. 8,769.63 Crores in Q4FY25, and the Net Profit grew by 47.78 percent YoY from Rs. 2,039.66 Crores in Q4FY24 to Rs. 3,014.22 Crores in Q4FY25. The company’s return on equity stands at 17.77 percent, and the return on capital employed stands at 13.63 percent and The company’s Dividend Yield stands at 0.53 percent. The company’s current PE Ratio is 25.24 against the industry PE of 47.46
Written By Likesh Babu S
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