Adani Ports Price Target Hiked As Kotak Sees 30% Upside — Details Inside

Adani Ports and Special Economic Zone Ltd. sees a price target hike by Kotak Institutional Equities, citing the company's fast growth, rapid value creation and expanding port portfolio. The target price for Adani Ports has been raised to Rs 1,900 from Rs 1,840, which implies a 30% upside to current levels.

The research firm has a buy rating on the stock.

Kotak Institutional Equities, in its latest report, highlighted the strong contributions from Adani Ports' newly commissioned assets and East Coast acquisition, both of which have boosted the company's growth visibility.

Kotak further projects steady volume growth across APSEZ's portfolio, with transshipment terminals likely to deliver strong performance in the years to come. The brokerage firm particularly underscored Mundra and Krishnapatnam terminals.

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The brokerage further noted that APSEZ's newly commissioned transshipment terminal at Mundra received capacity utilisation of more than 70% in just the first few months, which points to impressive efficiency.

Adani Ports has been strengthening its presence on the east coast with terminals at Gangavaram and Krishnapatnam—an expansion that Kotak Institutional Equities views as a key positive for the company.

“These assets have a sizeable ~1.5 million TEU transshipment potential and are expected to benefit from the uptick in regional cargo movement,” the note said.

Kotak Institutional Equities has increased its Ebitda estimates by 3% to reflect higher volumes from East Coast ports. These revisions imply earnings growth of 12%, 18% and 17% CAGR in revenue, Ebitda and profit over the three financial years through March 2028.

“Stock trades at 14.5 times one-year forward EV/Ebitda,” the brokerage said, adding that the company remains well placed to capture India’s rising trade flows.

Shares of Adani Ports have witnessed a strong rally, especially after Securities and Exchange Board of India's clean chit to the Adani Group in the Hindenburg case last week.

The regulator, in its final report, did not impose a penalty and cleared Adani Ports & Special Economic Zone Ltd., Adani Power Ltd., and Adani Enterprises Ltd. of any liabilities.

This led to a broad-based rally across Adani Group companies, with Adani Ports shares gaining more than 7% in last five trading sessions.

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