Adani Ports and Special Economic Zone Ltd. (APSEZ) now features among those few stocks on the Street, that do not have a ‘Sell’ recommendation on the stock. As many as 15 out of the 17 analysts that have coverage on the stock, have a ‘Buy’ rating on the stock, while the other two have a ‘Hold’ rating.
The port operating arm of the power-to-cement Adani conglomerate reported its September quarter results a day earlier, which largely met analyst estimates. The firm said it is “well positioned” to hit the upper end of its core profit forecast for fiscal year 2025.
India’s largest private port operator by volumes reiterated its FY25 cargo volume forecast in the 460 million metric tons (MMT)-480 MMT range, after volumes rose 10% in a quarter.
Brokerage firm Nuvama Institutional Equities mentioned that Adani Ports has been continuously delivering healthy growth across parameters. Moreover, the planned capacity expansion is expected to further drive volumes and in turn drive revenues and margin expansion.
According to Nuvama, the acquisition on the port side along with multi-fold capacity creation in the logistic business is expected to unleash multi-year growth prospects for the Adani group company.
The brokerage expects revenue, EBITDA, and profit to grow at a CAGR of 13%, 15%, and 21%, respectively, over FY24–27.
Nuvama values the stock on 20 times estimated December 2026 Enterprise Value-Ebitda to arrive at an unchanged target price of ₹2,000 per share. The brokerage has a ‘Buy’ rating on the counter.
Morgan Stanley maintains an ‘Overweight’ rating on Adani Ports, raising its price target to ₹1,648 per share.
The brokerage wrote in its note that the company’s balance sheet and cash flows remain strong, with FY25 guidance reiterated.
Port revenue and EBITDA grew by 10% and 13%, respectively (Morgan Stanley estimates were 11% for both).
Logistics revenue surged by 22% (Morgan Stanley estimate: down 5%), while logistics EBITDA increased by 7% (estimate: down 37%).
Net debt-to-EBITDA improved to 2 times (compared to 2.3 times forecast for FY24).
CLSA has an ‘Outperform’ rating on Adani Ports, with a price target of ₹1,764 per share, citing multiple strategic moves and progress in deleveraging.
For the first half of fiscal year 2025, Mundra traffic rose over 18% year-on-year, compared to a 9% increase across all ports.
In the second quarter, a diversified mix boosted results, with a resurgence in Mundra and recurring PAT rose 11% year-on-year.
UBS maintains a ‘Neutral’ rating on the counter, and a price target of ₹1,700 on sequentially flattish results. Colombo and Vizhinjam ports could be positive surprises, it said.
The brokerage mentioned that container volumes are the main growth driver, but Gangavaram port remains below trend for Q2. Coal volumes are stable, while logistics is growing.
Shares of Adani Ports are currently trading 1.15% higher at ₹1,388.50 apiece on NSE. The stock is up 33% so far in 2024.
Content retrieved from: https://www.cnbctv18.com/market/adani-ports-share-price-analysts-raise-price-targets-on-deleveraging-hopes-of-meeting-guidance-19501268.htm.
