Adani Ports Target Price Hiked At Macquarie — Details Inside

Adani Ports and Special Economic Zone Ltd., share price has received a target price hike from Macquarie on ports' cargo volume outperformance versus the all-India average and further scale-up of logistics business.

The brokerage has hiked the target price to Rs 1,760 from Rs 1,650 and maintained the 'outperform' rating, as the company has a strategic presence and integration of logistics offerings.

It expects Adani Ports to further consolidate its leadership position in India's ports trade, driven by continued capacity additions, strong client relationships and a high sticky cargo share.

"Further, the network effects of a rapidly growing logistics business are supportive. In addition, the inclusion of NQXT (Australia) in the portfolio and the ramp-up of the Colombo trans-shipment port should drive overall volumes higher in the medium term," it added.

Macquarie expects cash flow generation to remain strong given a >50% sticky in-port cargo mix and continuing diversification efforts. Net debt and Ebitda stand at a comfortable 2 times, and we expect them to continue to trend downwards.

The brokerage raised FY27E/28E EPS by 11.7%/20%, led by stronger growth in the logistics segment and the ramp-up of international capacities.

Adani Ports is well positioned to capitalise on India's long-term trade potential, noted Macquarie.

"We are optimistic on Adani Ports' long-term prospects, supported by its diversification efforts, execution track record, and expansion plans supported by cash flow," it added. "Valuations look reasonable."