Adani Ports Q1 Review: Analysts Up Target Price As India’s Infra Story To Aid Growth

Adani Ports and Special Economic Zone Ltd. received multiple target price upgrades following its strong first-quarter earnings. Analysts believe the Adani-group company is the best long-term stock that reflects India's infrastructure growth story.

HSBC Global Research views the Adani Ports as a long-term proxy for India's trade and infrastructure growth. The addition of the Vizhinjam and Colombo terminals should strengthen its capacity and pricing power, the brokerage said in a July 1 note.

The company is committed to expanding capacity at key domestic ports, including Mundra, the note said. On the international front, the ramp-up in Vizhinjam and Tanzania ports could provide better growth visibility, HSBC said.

Jefferies noted "buy the leader" as Adani Ports continues to move from strength to strength, with market share rising to 27% from 14% in fiscal 2015. "As core port Ebitda growth remains upward of double digits, backed by volumes, we remain positive on the stock."

The company remains optimistic of growing at two-to-three times India volume growth between new port additions, deepening customer base, and shipping line tie-ups, the brokerage said.

According to Motilal Oswal, a balanced port mix along India's western and eastern coastlines and a diversified cargo mix will propel the Gautam Adani-led company to outpace India's overall growth. "The company continues to invest heavily in the ports and logistics business to drive growth."

The brokerage expects it to report 11% growth in cargo volumes over fiscal 2024–2026. This would drive a compound annual growth rate of 14%, 15%, and 22% in revenue, Ebitda and profit, respectively, between fiscal 2024–2026.

Adani Ports' consolidated net profit rose in the first quarter of fiscal 2025, topping street expectations. Net profit of the company was up 47% year-on-year to Rs 3,107 crore in the April–June period, compared to Rs 2,119 crore in the year-ago period.

Ebitda (excluding foreign exchange) jumped 29% to Rs 4,848 crore as compared to Rs 3,754 crore during the quarter.

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