Adani Ports shares: What analysts say on this Adani group stock

Adani Ports and Special Economic Zone (APSEZ) has been the focus of several stock brokerages, including Elara Securities, MOFSL, and InCred Equities. These firms have maintained a 'Buy' rating on APSEZ, setting a target price of up to Rs 1,700, reflecting anticipated growth in the company's logistics and port operations.

MOFSL recently visited Adani Ports' Tumb Inland Container Depot (ICD) in Gujarat and highlighted the firm's strategic initiatives to enhance logistics efficiency and sustainability. "The Tumb ICD visit showcased how the overall logistics business of APSEZ is poised for robust growth, driven by increasing adoption of rail-based logistics, rising EXIM volumes, and ALL’s strategic focus on multimodal infrastructure," a representative stated. The brokerage forecasts APSEZ's cargo handling capacity to reach 505–515 million metric tonnes by FY26.

According to MOFSL, APSEZ is expected to achieve a 10% annual increase in cargo volumes from FY25 to FY27. This growth trajectory is anticipated to drive a compound annual growth rate (CAGR) of 16% in revenue, EBITDA, and PAT during this period, reinforcing the 'Buy' rating with a target price of Rs 1,700.

Elara Securities conveyed optimism about APSEZ, citing its potential in the logistics sector amid high fragmentation and inefficiency. "Amid three growth drivers—ports, logistics, and marine—logistics is growing at 11% (faster than major ports in India) with high fragmentation and inefficiency," the firm noted. Elara Securities values the ports business at 19x and logistics at 8x for FY27E.

This brokerage also has Rs 1,700 target price on the Adani Ports stock. 

APSEZ's logistics infrastructure includes the largest truck fleet in India and the second-largest number of rakes, allowing it to capitalise on rising demand in areas such as Vapi, Silvassa, and Daman. InCred Equities praised the Tumb ICD's operational scale, which boasts a handling capacity of 500,000 TEUs per annum.

The company has allocated a capital expenditure of Rs 15,000-20,000 crore for FY25-29, representing around 25% of its total planned capex. This investment is designed to enhance logistics capabilities and integrate technology across operations, improving efficiency and reducing costs.

APSEZ aims for a robust 50% revenue CAGR in its logistics vertical over the coming years, as outlined by MOFSL. This growth is expected to be fuelled by imminent investments in fleet expansion and value-added services like freight forwarding.

Furthermore, APSEZ is strategically focused on sustainability and multimodal infrastructure, which is expected to yield long-term benefits. The firm is well-positioned to manage a diversified cargo mix, supported by ongoing infrastructure investments.

The outlook for APSEZ remains positive, with brokerages holding a bullish view due to anticipated growth in logistics and port operations. The company's plans to optimise asset utilisation and enhance returns are central to achieving its projected targets.