Adani Ports is very well placed to continue to outpace industry growth and gain market share. Buy for target price of ₹1530 (29% upside): Motilal Oswal

Targets to double port volumes by 2029; setting itself to transform into a transport utility

 We visited the Vizhinjam Port of Adani Group and attended Adani Ports & SEZ (ADSEZ)’s analyst day. The management highlighted its focus on doubling its handled volumes over the next five years. The growth would be driven by Domestic ports, and volume guidance excludes any inorganic opportunities that come ahead. The logistics business is expected to ramp up significantly and would be a key driver in supporting the growth of port volume as the company increasingly provides endto-end services to its customers. The company continues to deploy the latest technology across its operations to improve efficiency and reduce the turnaround time.

 We believe the company is very well placed to continue to outpace industry growth and gain market share. The integration of the logistics business with the ports business is enhancing its service offerings and transforming the company into a transport utility. We reiterate our BUY rating with a TP of INR1,530 (29% upside).

Valuation and view

 ADSEZ is likely 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 company continues to invest heavily in the port and logistics business to drive growth.

 We expect ADSEZ to report 10% growth in cargo volumes over FY24-27. This would drive a revenue/EBITDA/PAT CAGR of 15%/15%/21% over FY24-27. We reiterate our BUY rating with a TP of INR1,530 (premised on 16x Sep-26 EV/EBITDA).

Adani Ports & SEZ