Adani Ports Stock Price: Among Gautam Adani Group shares, Adani Ports is the stock on which sentiments remain strong. Recovering from the allegations made by Hindenburg against Adani Group companies, this stock has shown strong rise and it has reached its life time high. Adani Ports has increased by about 211 percent from last year’s low. Brokerage houses are still bullish on the stock and they believe that its rise is not going to stop anytime soon. The share may further show a price of Rs 1410.
After Hindenburg’s allegations, on February 3, 2023, Adani Ports (APSEZ) fell to Rs 395, which is a 1-year low. On January 9, 2023, the share reached Rs 1230, which is an all-time high. Even today the share is trading around Rs 1220. That means the stock has become about 211 percent stronger than its record low.
Volume guidance for FY24
Adani Ports & SEZ (APSEZ) recorded 42 per cent YoY growth in volumes in the October-December 2023 quarter, taking total 9MFY24 volumes to 311 MMT, a growth of 23 per cent on YTD basis. With a monthly volume run-rate of 35MMT, the management has increased the volume guidance to 400 MMT in FY24 from earlier 370-390 MMT. The brokerage expects volumes to also exceed the revised volume guidance of 400 MMT for FY2024.
Focus on achieving 500 MMT cargo volume by FY25
The management of APSEZ has focused on reaching the port traffic target of 500MMT in FY25, which was 339MMT in FY23. Management believes that volume growth continues to be regular and is expected to grow at 1.5 times the GDP growth rate. Two ports of APSEZ are among the top 10 ports of India for annual cargo volume in FY23.
Transformation into an integrated logistics solutions company
Adani Logistics (ALL) has expanded its services to cover container train operations, container handling in logistics parks and warehouses providing warehousing and trucking solutions. With 10 multi-modal logistics parks, 104 trains, 2.4 million square feet of warehousing space and 1.1 million metric tonnes of grain silos, the aim is to establish a nationwide presence by further developing logistics parks and warehouses.
Target of Rs 1410 for the share
According to brokerage house Motilal Oswal, APSEZ has a diversified cargo mix and is looking to increase the port’s cargo share on the east coast. Operation ramp-up at the recently acquired port is expected to lead to 14 per cent growth in cargo volumes in FY23-26. This will increase Revenue, EBITDA and PAT CAGR by 19%, 18% and 17% in FY23-26. The brokerage has maintained its BUY rating with a revised target price of Rs 1410 (based on 16x FY26E EV/EBITDA).
Towards becoming the largest integrated transport utility company
APSEZ is poised to become India’s largest integrated transport utility company by 2030, strengthening its capabilities across all logistics sectors (ports, CTO, warehousing, last mile delivery, ICDs, etc.). The company provides end-to-end service to its customers, thereby achieving higher wallet share.
APSEZ started 3QFY24 with 48% YoY growth in traffic in Oct’23 and 42% YoY growth in traffic in Nov’23 and Dec’23 due to growth in coal and M&A (Haifa and Dighi ports) .