- Jefferies maintains buy rating on Adani Ports with target price raised to Rs 2,100
- Adani Ports' market price of Rs 1,760 implies a potential upside of about 19%
- Strong cash flow supports growth capital expenditure and balance sheet deleveraging
Jefferies has maintained its 'buy' rating on Adani Ports and Special Economic Zone Ltd., while raising its target price to Rs 2,100 from Rs 1,980, reflecting confidence in the company's medium-term growth outlook. The current market price is Rs 1,760 which implies an upside of about 19%.
The brokerage said strong cash flow visibility supports the coexistence of growth capital expenditure and balance sheet deleveraging. It has noted capital allocation as a key focus area, with the company expected to balance expansion plans while strengthening its financial position.
Jefferies noted that domestic port volumes are likely to benefit from market share gains and government initiatives. It also said the company's port-logistics ecosystem and network effects remain key enablers of sustained volume growth.
According to the brokerage, free cash flow generation is expected to accelerate meaningfully after FY26, supported by improving operating performance and disciplined capital deployment. RoCE (Return on Capital Employed) expansion also remains a key driver for the company's valuation and long-term investment case.
ALSO READ: Adani Ports Announces Rs 7.5 Per Share Dividend — Check Record Date
Adani Ports and Special Economic Zone Ltd. Q4 Results
Adani Ports and Special Economic Zone Ltd. reported FY26 revenue growth above its guidance, aided by higher cargo volumes and expansion across its logistics and marine businesses. The performance prompted brokerages to raise their target prices, citing better visibility on the company's medium-term growth outlook.
Revenue rose 25% year-on-year to Rs 38,736 crore in FY26, surpassing the company's guidance of Rs 38,000 crore. Earnings before interest, tax, depreciation and amortisation increased 20% to Rs 22,851 crore, also coming in above the guided range.
The company handled over 500 million metric tonnes of cargo during the year, a first for its operations. Brokerages expect growth to be supported by capacity additions, a scale-up in logistics and disciplined capital allocation over the medium term.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.