Adani Ports and Special Economic Zone Ltd. received the highest target price among analysts tracked by Bloomberg after HSBC raised its target price to Rs 2,200 from Rs 1,950 and reiterated its 'buy' rating, citing stronger operations, lower debt and improved disclosures.
The revised target price is the highest among analysts tracked by Bloomberg.
HSBC said Adani Ports is well placed to benefit from above-market organic domestic port growth, rising cargo volumes and the expansion of its integrated logistics business. The brokerage also said deleveraging, better disclosures and lower funding costs support further upside in the stock.
"We retain our buy and see further re-rating despite near-peak valuations," HSBC said in its report.
The brokerage said Adani Ports has built a diversified cargo mix that reduces dependence on any single cargo cycle, while its integrated logistics and marine services businesses continue to strengthen customer relationships and improve strategic positioning.
HSBC expects Adani Ports' share of India's cargo handling market to increase to 17% by FY31 from 13% in FY26, driven by steady organic growth, disciplined greenfield and inorganic expansion, and strategic partnerships.
The brokerage forecasts FY31 EBITDA of about Rs 49,000 crore, around 5% above Bloomberg consensus, supported by higher cargo volumes, increased domestic cargo utilisation and capital expenditure. It expects EBITDA to grow at a 15% compound annual rate between FY26 and FY31.
HSBC also said Adani Ports' balance sheet provides room for further expansion. It expects the company to pursue brownfield port opportunities while maintaining a supportive debt profile.
The brokerage largely maintained its FY27 EBITDA estimates but increased projections for later years. It raised FY28 EBITDA estimates by 5%, FY29 by 13% and FY30 by 8%, reflecting stronger volume assumptions and contributions from domestic cargo growth. HSBC also said the ramp-up at the Vizhinjam port should support earnings growth after FY27.
"Adani Ports can compound volumes via share gains and expand margins," HSBC said. It added that growth across logistics, international ports and marine services should diversify earnings and support returns, providing further support for its valuation.
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