Adani Ports & SEZ Q2 Review: Brokerages Hike Target Price On Improved Growth Outlook
Goldman Sachs and Jefferies hiked target price for Adani Ports and Special Economic Zone Ltd. shares.
Top brokerages hiked the target price for Adani Ports and Special Economic Zone Ltd. following robust second-quarter results of the company. According to Goldman Sachs, the risk-reward ratio of the stock looks attractive.
Adani Ports and Special Economic Zone reported a 12.4% volume growth because its portfolio of port assets leveraged it for market share gains, Goldman Sachs said. The company will get more organic and inorganic growth opportunities as the balance sheets get stronger.
In the second half, Adani Ports and Special Economic Zone will see an increase in volume growth as new ports start operating, according to Goldman Sachs. Vizinjham, Tanzania, and Colombo Ports will continue to deliver strong traffic in subsequent quarters.
In coking coal segment, Adani Ports and Special Economic Zone increased their market share to 41.9% from 36.5%. Coastal coal share reached 31.1% compared to 27.8% in the second quarter of the financial year 2025. The management of the company also highlighted an increased focus on electric vehicles.
Goldman Sachs has a Buy rating on the stock with a target price Rs 1,540 apiece, which implied a 7% upside from Tuesday's close level.
Adani Ports & SEZ Q2 Earnings Key Highlights (Consolidated, YoY)
Revenue rose 29.7% to Rs 9,167 crore versus Rs 7,067 crore
Ebitda rose 27% to Rs 5,550 crore versus Rs 4,369 crore
Net Profit rose 27.2% to Rs 3,109 crore versus Rs 2,445 crore
Adani Ports and Special Economic Zone Ltd. maintained its strategy to drive absolute Ebitda growth., led by integrated logistics solutions. Capital allocation is in focus, according to Jefferies.
Jefferies has a Buy rating on the stock. The brokerage hiked the target price to Rs 1,880 apiece from Rs 1,815, which implies a 30% upside potential from the Tuesday's close price.
Macquarie maintained an Outperform rating and Rs 1,760 target price, which implied a 22% upside. Adani Ports and Special Economic Zone is well-placed to achieve the volume growth target for financial year 2026. The long-term outlook remained positive because of the diversification efforts, execution track record, and expansion plans.
CLSA also maintained an Outperform rating with a target price of Rs 1,764 apiece on Adani Ports and Special Economic Zone. The target price implied a 22% upside from Tuesday's close price.
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