The Nifty-listed stock Adani Ports and SEZ saw a target price increase by brokerage firm Motilal Oswal following the company’s strong performance in the March quarter.
The brokerage company increased the target price to ₹1,550 but kept its “buy” rating on the Adani Ports and SEZ stock. “We largely retain our estimates and reiterate our BUY rating with a revised TP of ₹1,550 (based on 17x FY26E EV/EBITDA),” added the firm.
Due in large part to a well-balanced port portfolio along both the western and eastern coastlines as well as operational improvements at recently acquired ports, APSEZ is expected to achieve cargo volume growth that is two to three times that of India.
It is anticipated that APSEZ will report an 11% rise in cargo volumes between FY24 and FY26. This will translate into a Compound Annual Growth Rate (CAGR) of 14%, 15%, and 19% for revenue, EBITDA, and profit after tax (PAT), respectively.
“We expect APSEZ to report 11 per cent growth in cargo volumes over FY24-26. This would drive a CAGR of 14 percent/15 per cent/19 per cent in revenue/EBITDA/PAT over FY24-26. APSEZ is anticipated to outpace India’s overall growth, driven by a balanced port mix along India’s western and eastern coastlines and a diversified cargo mix,” the firm mentioned.
In addition to Motilal Oswal, brokerage company Jefferies has increased the target price of Adani shares to ₹1,640, citing a 5% shortfall in Q4 EBITDA owing to slightly lower realizations. However, the management expressed optimism in reaching double-digit growth in their remarks.
