Adani Ports Target Price Hiked At Macquarie — Details Inside
Adani Ports and Special Economic Zone's share price target hiked to Rs 1,760 from Rs 1,650 with 'outperform' rating.
Adani Ports and Special Economic Zone Ltd., share price has received a target price hike from Macquarie on ports' cargo volume outperformance versus the all-India average and further scale-up of logistics business.
The brokerage has hiked the target price to Rs 1,760 from Rs 1,650 and maintained the 'outperform' rating, as the company has a strategic presence and integration of logistics offerings.
It expects Adani Ports to further consolidate its leadership position in India's ports trade, driven by continued capacity additions, strong client relationships and a high sticky cargo share.
"Further, the network effects of a rapidly growing logistics business are supportive. In addition, the inclusion of NQXT (Australia) in the portfolio and the ramp-up of the Colombo trans-shipment port should drive overall volumes higher in the medium term," it added.
Macquarie expects cash flow generation to remain strong given a >50% sticky in-port cargo mix and continuing diversification efforts. Net debt and Ebitda stand at a comfortable 2 times, and we expect them to continue to trend downwards.
The brokerage raised FY27E/28E EPS by 11.7%/20%, led by stronger growth in the logistics segment and the ramp-up of international capacities.
Adani Ports is well positioned to capitalise on India's long-term trade potential, noted Macquarie.
"We are optimistic on Adani Ports' long-term prospects, supported by its diversification efforts, execution track record, and expansion plans supported by cash flow," it added. "Valuations look reasonable."
