Shares of this Adani group stock closed in green after a well-known brokerage provided a target upgrade seeing a potential upside of nearly 20 percent from the current stock price level.
With a market capitalization of Rs 2.20 lakh crores, the stocks of Adani Ports & Special Economic Zone Limited closed at Rs 1,018.65 on Wednesday.
The company’s stock witnessed an intra-day high, also marked as the new 52-week high, of Rs 1,082.95 indicating a jump of around 7 percent compared to the previous close of Rs 1,011.85 apiece.
Citi, one of the well-known Brokerage firms across the globe, raised the target price for the Adani Group company to Rs 1,213 from the previous level of Rs 972. The revised target price, thus, portrays a potential upside of nearly 20 percent compared to the prevailing stock price.
The rationale for providing such a recommendation pertains to the company’s continuous execution and growth in dominance in the port and logistics space in India. Furthermore, the analysts believe that the company’s new projects are close to commissioning and the logistics business seems strong.
The Brokerage firm added, “Despite the rally seen post state election results, we believe that there is still an ample scope for valuations to re-rate. The valuations in 2023 were suppressed due to negative news flow around the Adani Group,”.
Kotak Institutional Equities, a domestic brokerage, also gave a ‘Buy’ call on Adani Ports with a target price of Rs 1,060 per share exhibiting a potential upside of 4 percent.
Majority of listed company shares under the Adani Group have seen a huge rally since the inception of December 2023 with Adani Ports hiking around 23 percent. In addition, Adani Power Limited and Adani Total Gas Limited rose around 30 percent and 50 percent respectively.
During the recent financial quarters, the basic business indicators such as operating revenues and after-tax profits showed opposing movements.
The former, on one end, increased from Rs 6,247.55 crores during Q1FY23-24 to Rs 6,646.41 crores during Q2FY23-24, and, the latter, on the other end, slipped from Rs 2,194.63 crores to Rs 1,715.81 crores.
Adani Ports & Special Economic Zone Limited is a port infrastructure company that owns, operates, develops, and maintains various port terminals & port infrastructure in India. The company also owns and operates private railways to transport container cargo and provide other logistics services.
Written by Amit Madnani
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