This Adani Group stock engaged in port operations, logistics, and SEZ management, facilitating cargo movement and economic development across India, is in focus after Motilal Oswal has given a buy target price of Rs. 1,400, which has an upside potential of 23.33 percent.
Stock Price Movement:
With a market capitalization of Rs. 2,46,331.44 crores, the share of Adani Ports and Special Economic Zone Limited has reached an intraday high of Rs. 1,145.80 per equity share, rising nearly around 0.28 percent from its previous day’s close price of Rs. 1,142.60. Since then, the stock has retreated and is currently trading at Rs. 1,140.35 per equity share.
Company Overview:
Adani Ports & Special Economic Zone Limited is India’s largest integrated ports and logistics company, operating 12 ports and terminals. It develops and maintains port infrastructure and offers logistics services across India and internationally, including Bangladesh, Singapore, Australia, and Myanmar
Target Price:
Motilal Oswal has maintained a buy rating on the Adani Ports and Special Economic Zone Limited and given a target price of Rs. 1,400, which has an upside potential of 23.33 percent from the opening price of Rs. 1,135.15.
Rationale:
Motilal Oswal is confident that the company is in a strong position to outpace industry growth and increase its market share. The logistics business will add significant value to the domestic port sector, focusing on improving last-mile connectivity.
With a target of doubling handled volumes by 2029, the company is expected to see 10 percent growth in cargo volumes from FY24 to FY27. This growth will drive a CAGR of 14 percent in revenue, 15 percent in EBITDA, and 19 percent in PAT over the same period. Motilal Oswal’s target reflects the company’s potential to significantly outperform industry peers and strengthen its market leadership.
Capex Plan:
The company has set a capex target of Rs. 11,500 crore for FY25, with Rs. 4000 crore already spent in the first half of the year. Of the total, approximately Rs. 7,400 will be directed towards the port business, including marine services, Rs. 2,300 crore towards the logistics business, and around Rs. 1,500 crore to renewables for decarbonization.
Additionally, the company aims to develop 1,000 MW of renewable energy, combining both solar and wind power, as part of its commitment to sustainable growth.
Global Presence:
The company is India’s largest private port operator and manages 12 ports and terminals, handling 44 percent of the country’s containerized seaborne cargo. Expanding globally, the company plans to build a new port in Da Nang, Vietnam, while also operating ports in Haifa (Israel), Colombo (Sri Lanka), and Dar es Salaam (Tanzania), strengthening its international presence.
Recent quarter results:
Adani Ports and Special Economic Zone Limited’s revenue has increased from Rs. 6,920 crore in Q3 FY24 to Rs. 7,964 crore in Q3 FY25, which has grown by 15.09 percent. The net profit has also grown by 14.04 percent from Rs. 2,208 crore in Q3 FY24 to Rs. 2,518 crore in Q3 FY25.
Written By – Nikhil Naik
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