Shares of Adani Ports and Special Economic Zone witnessed a nearly 4% surge, hitting an all-time high of Rs 1,213.25 on the National Stock Exchange on Tuesday. This uptick follows Motilal Oswal‘s reaffirmation of a buy rating for the stock, setting a target price of Rs 1,410, signaling a 21% upside from Monday’s closing price. The target price is based on 16X FY26E EV/EBITDA.
The stock exhibited positive movement alongside substantial trading volumes, with around 43.36 lakh shares traded on the NSE by 10:10 am, reflecting a traded value of Rs 520.15 crore.
According to an ET report, Motilal Oswal emphasized that Adani Ports, which is the largest Indian ports company, has the potential to surpass FY24 volume expectations. In the October-December 2023 quarter, the company reported a 42% YoY volume increase, summing up the 9MFY24 volumes at 311 MMT, marking a 23% YoY growth YTD.
The brokerage firm indicated, “With a monthly volume run-rate of 35 MMT, management has increased volume guidance to 400 MMT in FY24 from 370-390 MMT earlier. We expect volumes for FY24 to even surpass the revised volume guidance of 400 MMT.”
Motilal highlighted APSEZ’s commitment to reaching its FY25 port traffic goal of 500 MMT compared to 339 MMT in FY23, predicting volume growth at 1.5 times the GDP growth rate. Additionally, two of APSEZ’s ports ranked among India’s top 10 ports for annual cargo volume in FY23.
Over FY18-23, APSEZ consistently generated robust cash flow from operations, totaling Rs 43,300 crore at a CAGR of 16%. Looking ahead, the focus is on optimizing the acquired assets for sustained strong cash flows. Motilal estimated a CFO CAGR of 14% over FY23-26.
Adani Ports’ shares have notably rebounded from the lows of Rs 395.10 experienced after the Hindenburg report in January last year, delivering returns of over 200%.
The stock exhibited positive movement alongside substantial trading volumes, with around 43.36 lakh shares traded on the NSE by 10:10 am, reflecting a traded value of Rs 520.15 crore.
According to an ET report, Motilal Oswal emphasized that Adani Ports, which is the largest Indian ports company, has the potential to surpass FY24 volume expectations. In the October-December 2023 quarter, the company reported a 42% YoY volume increase, summing up the 9MFY24 volumes at 311 MMT, marking a 23% YoY growth YTD.
The brokerage firm indicated, “With a monthly volume run-rate of 35 MMT, management has increased volume guidance to 400 MMT in FY24 from 370-390 MMT earlier. We expect volumes for FY24 to even surpass the revised volume guidance of 400 MMT.”
Motilal highlighted APSEZ’s commitment to reaching its FY25 port traffic goal of 500 MMT compared to 339 MMT in FY23, predicting volume growth at 1.5 times the GDP growth rate. Additionally, two of APSEZ’s ports ranked among India’s top 10 ports for annual cargo volume in FY23.
Over FY18-23, APSEZ consistently generated robust cash flow from operations, totaling Rs 43,300 crore at a CAGR of 16%. Looking ahead, the focus is on optimizing the acquired assets for sustained strong cash flows. Motilal estimated a CFO CAGR of 14% over FY23-26.
Adani Ports’ shares have notably rebounded from the lows of Rs 395.10 experienced after the Hindenburg report in January last year, delivering returns of over 200%.