Adani Ports and Special Economic Zone's proposed acquisition of Netherlands-based liquid storage operator Evos B.V. is expected to be earnings per share (EPS)-accretive and contribute to EBITDA immediately after the transaction closes, according to brokerage firms. The acquisition is also expected to improve the company's return on capital employed (RoCE), potentially taking it to double-digit levels by FY30, supported by higher utilisation, operational efficiencies and a greater contribution from value-added services.
Adani Ports, India's largest integrated transport operator, on Thursday announced the acquisition of a 100% stake in Evos from Igneo Infrastructure Partners. The proposed transaction is an all-cash deal at an enterprise value of 2.56 billion euros. The deal values Evos at an equity value of 1.18 billion euros, implying an acquisition multiple of 11.7 times its CY25 enterprise value to EBITDA.
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Evos reported revenue of 392 million euros and EBITDA of 219 million euros in CY25, translating into an EBITDA margin of 56%. The acquisition will add 6.3 million cubic metres of liquid storage capacity across Europe, significantly expanding Adani Ports' presence in the international liquid storage business.
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The pro forma net debt-to-EBITDA ratio of the combined entity stands at 2.76 times, based on Adani Ports' FY26 and Evos' CY25 financials. However, the company expects the leverage ratio to moderate to around 2.5 times by FY27, indicating manageable balance sheet implications, according to brokerages.
Jefferies On Adani Ports
Jefferies has maintained its ‘Buy' rating on Adani Ports with a target price of Rs 2,180 per share. The brokerage believes the acquisition will strengthen the company's European liquid storage footprint by adding 6.3 million cubic metres of capacity. It expects a shift towards higher-value fuels and improved utilisation levels to drive operational efficiencies and increase RoCE from the current 7% to double-digit levels over the next two to three years.
The brokerage firm expects the company's net debt-to-EBITDA ratio to remain around 2.5 times by FY27, suggesting that the acquisition-related leverage should remain manageable.
JM Financial On Adani Ports
JM Financial has also maintained its ‘Buy' rating on the stock, with a target price of Rs 2,065. According to the brokerage, the 2.56 billion euro acquisition will more than double Adani Ports' liquid storage capacity, strengthening its presence in the European market.
It believes the integration of value-added services and opportunities in sustainable fuels could help improve Evos' RoCE to above 10%. While the acquisition is expected to have a largely neutral impact on near-term earnings, the brokerage expects leverage to normalise to around 2.5 times by FY27.
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Emkay Global On Adani Ports
Emkay Global has retained its ‘Buy' rating on Adani Ports with a target price of Rs 2,200 per share. The brokerage expects the Evos acquisition to be EPS-accretive, with the transaction closure targeted by Q4FY28. It believes opportunities in sustainable fuels, blending and distribution could improve the profitability of the acquired business and take its RoCE to double-digit levels by FY30.
The brokerage also highlighted that relatively low capital expenditure requirements and strong cash conversion should support balance sheet deleveraging and improve long-term profitability.
Nuvama On Adani Ports
Nuvama has maintained its ‘Buy' recommendation on Adani Ports with a target price of Rs 2,170. The brokerage expects Evos to contribute to EBITDA immediately after the acquisition closes, providing an additional earnings stream for the company.
The brokerage house believes higher-value fuels and improved capacity utilisation could help increase RoCE from around 7% to double-digit levels. It also expects the net debt-to-EBITDA ratio to moderate to approximately 2.5 times by FY27.
Motilal Oswal On Adani Ports
Motilal Oswal has maintained its ‘Buy' rating on Adani Ports with a target price of Rs 2,170 per share. The brokerage highlighted that the acquisition will add 6.3 million cubic metres of liquid storage capacity across Europe, strengthening the company's international infrastructure portfolio.
Motilal Oswal expects Evos to achieve double-digit RoCE over the next two to three years, driven by operational efficiencies and improved utilisation. The brokerage also projects Adani Ports to deliver a revenue, EBITDA and net profit compound annual growth rate (CAGR) of 17%, 18% and 21%, respectively, over FY26-FY28.
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