Adani Ports Poised For Long-Term Growth Says Motilal Oswal; Sees 22% Upside — Check Revised Target Price
Capacity enhancements at key ports, ongoing infrastructure projects, and global port acquisitions provide visibility for steady growth in FY26 and beyond.
Motilal Oswal reiterates Buy rating on the stock and revises target price citing strong earnings visibility and a diversified growth pipeline.
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Motilal Oswal Report
Motilal Oswal highlights that Adani Ports and Special Economic Zone Ltd. has strengthened its earnings visibility through the strategic acquisition of NQXT and the expansion of integrated end-to-end logistics offerings.
These initiatives enable APSEZ to capture a larger share of customer spend, enhance cargo stickiness, and leverage its diversified, scalable business model for sustainable growth.
The brokerage believes these developments position Adani Ports to achieve its ambition of becoming India’s largest integrated transport utility by 2029, with logistics and marine services emerging as key growth engines alongside its dominant ports franchise.
Motilal Oswal reiterates Buy rating on the stock with a revised target price of Rs 1,800 (premised on 16x FY28E EV/Ebitda) citing strong earnings visibility and a diversified growth pipeline.
Valuation and view
With strong cash flows, a healthy cash balance of Rs 130 billion, and a net debt-to-Ebitda ratio of 1.8x, Adani Ports is well-positioned for further expansion.
Capacity enhancements at key ports, ongoing infrastructure projects, and global port acquisitions provide visibility for steady growth in FY26 and beyond. APSEZ’s diversified cargo mix and ongoing infrastructure investments are expected to support its target of 505-515mmt (ex-NQXT) cargo handling in FY26. We expect APSEZ to report 8% growth in cargo volumes over FY25-28E. This would drive a CAGR of 15%/15%/18% in revenue/EBITDA/PAT over FY25-28E.
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