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Adani Ports in Focus After MSC Deal; Motilal Oswal Maintains Buy — Check Target Price, Upside

The brokerage highlighted that Adani Ports' strategic partnership with MSC Group's terminal arm, TiL is expected to enhance cargo visibility and accelerate volume ramp-up at Vizhinjam ahead of the planned capacity expansion, which is scheduled for completion by FY29.

Adani Ports in Focus After MSC Deal; Motilal Oswal Maintains Buy — Check Target Price, Upside
Motilal Oswal believes the company is well-positioned to sustain its growth trajectory, supported by strong cash flows, ongoing infrastructure expansion and its integrated logistics ecosystem.
(Photo: Company website)
STOCKS IN THIS STORY
Adani Ports and Special Economic Zone Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

 Adani Ports and Special Economic Zone Ltd.'s shares are likely to be in focus after domestic brokerge firm Motilal Oswal reiterated a ‘Buy' rating on the stock, citing a strong long-term growth outlook driven by its strategic alliance with global shipping major MSC Group.

The brokerage highlighted that Adani Ports' strategic partnership with MSC Group's terminal arm, Terminal Investment Ltd. is expected to enhance cargo visibility and accelerate volume ramp-up at Vizhinjam ahead of the planned capacity expansion, which is scheduled for completion by FY29.

As the port's capacity increases from 1.6m TEUs to 5.7m TEUs, MSC's extensive global shipping network and cargo commitments should support higher asset utilisation, strengthen Vizhinjam's position as a leading transshipment hub, and drive sustained growth in Adani Ports's transshipment volumes over the medium term.

Motilal Oswal believes the company is well-positioned to sustain its growth trajectory, supported by strong cash flows, a healthy cash balance of Rs 12,200 crore and ongoing infrastructure expansion. Adani Ports' integrated logistics ecosystem and global port acquisitions provide visibility for stable growth in FY27 and beyond.

Additionally, Adani Ports' diversified cargo mix and ongoing infrastructure investments are expected to support its volume growth.

The brokerage anticipates Adani Ports to report 11% growth in cargo volumes over FY26-28. This growth is likely to drive a compound annual growth rate of 17%/18%/22% in revenue/Ebitda/PAT over FY26-28E.

The brokerage has maintained its Buy rating with a target price of Rs 2,050, implying a potential upside of 13% from current levels. 

Click on the attachment to read the full report:

Motilal Oswal Adani Ports Update.pdf
VIEW DOCUMENT

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