APSEZ Stocks: Buy Adani Ports Shares After Q2 Results? Here are price targets

The September quarter results are through Adani Ports & Special Economic Zone Ltd (APSEZ) largely met analyst estimates. APSEZ is expected to register 1.5 to 2 times freight volume growth in India, driven by market share gains and increased capacity. Analysts say the logistics activities will serve as a value-add to the domestic port operations, with a focus on improving last-mile connectivity. They largely maintained their ‘Buy’ ratings and target prices on the stock after the second quarter results.

“APSEZ has consistently delivered healthy growth across all parameters. Moreover, the planned capacity expansion will further boost volumes and in turn boost revenues and margin expansion. Acquisitions on the port side, along with multiple capacity creation in the logistics sector, would annual growth prospects for APSEZ,” said Nuvama Institutional Equities.

This brokerage expects revenues for Adani Ports to grow at 13 percent annually in FY24-27, Ebitda by 15 percent and PAT by 21 percent. It values ​​the stock at 20 times estimated December 2026 EV/Ebitda to arrive at an unchanged target price of Rs 2,000.

APSEZ remained confident of achieving the aforementioned volume guidance (460-480 mmt for FY25) and reaching the top end of Ebitda guidance (Rs 17,000-18,000 crore) during FY25. Robust increases in volumes at existing ports, along with acquisitions or new capacity additions, could keep the growth trajectory on track, analysts said.

The company has expanded its logistics operations by expanding rakes, warehouses, MMLPs and agricultural silos. This can enable the company to position itself as an end-to-end player in the value chain, Nuvama said.

MOFSL said it largely stuck to its estimates for FY25, FY26 and FY27. It expects Adani Ports to report 10 percent growth in cargo volumes in FY24-27. This would deliver a CAGR of 15 percent in revenue, 15 percent in Ebitda and 21 percent in PAT over FY24-27.

“We reiterate our buy rating with a revised price target of Rs 1,780 (assuming 18x on September 26 EV/Ebitda),” MOFSL said.