"Regarding Adani Ports' stock price, JM Financial has revised its estimates by 3-5%, taking into account the performance in the third quarter of FY24 and a positive outlook. The current valuation places Adani Ports at 16 times EV/Ebitda, representing a 10% premium compared to its three-year median."
"Adani Ports & Special Economic Zone Ltd (Adani Ports or APSEZ) shares have witnessed increases in price targets, attributed to robust year-on-year growth of 40-45% in crucial port and overall operating metrics, coupled with a 60% surge in adjusted profit. Analysts noted that the 24% volume growth in the first nine months was well-distributed across key cargo categories, with equal contributions from Mundra, non-Mundra ports, and a boost from inorganic sources."
"APSEZ has observed no significant repercussions from the Red Sea crisis and does not perceive any substantial competitive threat to Mundra's volumes. The company emphasized the manifestation of its network effect in increased coastal shipping volumes, contributing to a 4% growth in the first nine months of FY24. We are maintaining our short-term estimates while raising the fair value by 4% to Rs 1,400 based on a more optimistic medium-term outlook," the statement highlighted.
"JM Financial has adjusted its projections by 3-5% to account for the performance in the third quarter of FY24 and a more positive outlook. The revised valuation for Adani Ports stands at 16 times EV/Ebitda, representing a 10% premium over its three-year median of 14.5 times, indicating optimism regarding growth prospects. The brokerage firm has set a target of Rs 1,430 by March 2025."
"APSEZ has successfully finalized the divestment of its Myanmar assets and the acquisition of Karaikal Port. The company is actively addressing concentration risks, with non-Mundra volumes accounting for 46% in the first nine months of FY24, compared to 44% YoY. Additionally, APSEZ reported no volume disruptions for its Haifa port amidst the geopolitical conflict in the region, according to Nuvama. Consequently, this brokerage has raised its target on the stock to Rs 1,415 from Rs 958."
Motilal Oswal highlighted that Adani Ports possesses a diversified cargo mix, coupled with a loyal cargo and customer base. The anticipated operational enhancement at recently acquired ports is poised to fuel a 14% increase in cargo volumes from FY23 to FY26. This, the report states, is projected to lead to a Compound Annual Growth Rate (CAGR) of 19% in revenue, EBITDA, and Profit After Tax (PAT) during the same period.
