With a market cap of $37 bn, Adani Ports becomes world's largest transport op and services firm

Adani Ports & Special Economic Zone has soared to a market value of approximately $37 billion, surpassing Beijing-Shanghai High Speed Railway to become the world’s largest transport operations and services provider.

The company's increasing cargo volumes and inclusion in India’s S&P BSE Sensex Index are poised to drive further growth.

“This marks the start of a new journey for Adani Ports,” said Deven Choksey, managing director at DRChoksey FinServ. The company is now generating significant cash and efficiently handling millions of metric tons of cargo, making expansion more seamless, he added.

Adani Ports handled 27% of India’s total cargo and 44% of container cargo in the year ending March 31, according to a company statement. The volume rose by 24% from the previous year, with ten domestic ports achieving record highs.

“The company’s strong balance sheet and acquisition strategy signal further growth,” said Priyankar Biswas, an analyst at BNP Paribas Securities India. In March, Adani Ports agreed to acquire India’s Gopalpur port and recently secured a majority stake in a Tanzanian container terminal.

Starting Monday, Adani Ports will be included in India’s benchmark equity index, a move expected to attract $252 million in inflows, according to Nuvama Alternative & Quantitative Research.

However, challenges remain. Bloomberg Intelligence analyst Denise Wong highlighted potential risks following India’s election. The stock dropped over 20% on June 4 after Prime Minister Narendra Modi’s alliance secured a narrow majority but has since regained some ground.

“Adani Ports might face uncertain earnings growth under India’s new coalition government,” Wong wrote in a report.