Jefferies has retained a positive view on the ports and logistics sector after industry cargo volumes rose in September, supported by strong performance at major ports and healthy growth in external trade.
The brokerage noted that overall port volumes increased 6% year-on-year during the month, aided by robust activity at major ports. India's EXIM trade grew 13% from a year ago, driven by higher container traffic, coal shipments, petroleum, oil and lubricants (POL) cargo, as well as gems and jewellery exports.
Container volumes continued to outperform rail volumes, supported by resilient transshipment traffic. Jefferies also highlighted a sharp rebound in freight rates amid geopolitical tensions in the Middle East and disruptions to global shipping routes, reflecting sustained demand in the logistics ecosystem.
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For Adani Ports and Special Economic Zone, the brokerage expects double-digit growth in domestic cargo volumes, excluding international operations, reinforcing the company's position as the country's largest private port operator.
Jefferies said freight costs remain elevated, with fuel continuing to account for a significant share of trucking expenses. Even so, demand indicators remain encouraging, with registrations of medium and heavy commercial vehicles staying healthy.
Among its sector preferences, the brokerage continues to favour Adani Ports and Special Economic Zone and JSW Infrastructure, citing their strong volume growth prospects and operational efficiencies.
Jefferies is also constructive on Container Corporation of India (Concor), which it sees benefiting from enhanced connectivity between the Dedicated Freight Corridor and Jawaharlal Nehru Port, a development that could support long-term growth in container rail traffic.
Share Price
Adani Ports opened 0.74% higher at Rs 1,763.80 apiece on the NSE. The share price extended gains to touch an intraday high of Rs 1,770 after jumping over 1%. Shares have risen 20.19% year-to-date and 19.44% in the las 12 months.
JSW Infra, on the other hand, traded 0.46% lower at Rs 338.8 apiece, compared to a 0.06% decline in the benchmark Nifty index. The stock has risen nearly 19% year-to-date and 14% in the last 12 months.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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