Adani Ports share price rallies over 3% to hit 52-week high; Motilal Oswal raises target
- Adani Ports and Special Economic Zone, the largest private port operator in India, entered the bond market for the first time in over two years on Monday, with the issue garnering strong demand.
Adani Ports share price extended gains for the eight straight session to hit a 52-week high on Tuesday, with the stock rallying over 17% in the past one month. Adani Ports shares gained as much as 3.79% to a fresh high of ₹1,213.00 apiece on the BSE.
Adani Ports and Special Economic Zone, the largest private port operator in India, entered the bond market for the first time in over two years on Monday, with the issue garnering strong demand.
The company accepted bids aggregating to ₹500 crore for two listed bonds, with one maturing in five years and the other in 10 at coupons of 7.80% and 7.90%, respectively. The company received bids totalling ₹1,000 crore, with participation from banks and insurance companies, according to three merchant bankers, Reuters reported.
The fundraising comes after the Supreme Court’s decision that the Adani Group is not required to undergo additional investigations beyond the market regulator’s current scrutiny.
Domestic brokerage firm Motilal Oswal Financial Services raised target price on Adani Ports shares as it believes the company is well positioned to surpass volume guidance of FY24.
Adani Ports & SEZ reported 42% YoY growth in volumes for the third quarter ended December 2023, taking the total 9MFY24 volumes to 311 MMT, registering a 23% YoY growth on YTD basis.
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With a monthly volume run-rate of 35 MMT, management has increased volume guidance to 400 MMT in FY24 from 370-390 MMT earlier.
Motilal Oswal expect volumes for FY24 to even surpass the revised volume guidance of 400 MMT.
“Going forward, APSEZ targets to become India’s largest integrated transport utility and world’s largest private port company by 2030. APSEZ has a diversified cargo mix and is looking to increase cargo share of port on the east coast. The operational ramp-up at the recently acquired ports is expected to drive a 14% growth in cargo volumes over FY23-26. This would drive a revenue, EBITDA, PAT CAGR of 19%, 18%, 17% over FY23-26,” Motilal Oswal said.
The brokerage firm reiterated its ‘Buy’ rating on the stock and raised the target price to ₹1,410 per share based on 16x FY26E EV/EBITDA.
With improvement in utilization levels of existing ports and improving global trade, the brokerage expects volume momentum to continue ahead. The company’s strong market leadership in the ports segment, focus on value-added areas such as logistics, and commitment to strategic acquisitions position it favorably.
At 10:00 am, Adani Ports shares were trading 3.47% higher at ₹1,209.25 apiece on the BSE.
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