Last Updated: December 06, 2023, 11:34 IST
Adani Ports and Special Economic Zone (APSEZ) shares soared 7 per cent to hit a contemporary excessive of Rs 1,082 per share on the BSE on December 6 after world brokerage agency Citi raised goal value on the counter to Rs 1,213 apiece from Rs 972, implying an upside of over 12 per cent.
In the previous one week, the inventory of Adani Ports & SEZ has soared over 23 % as towards 4 % rise within the benchmark Sensex.
Adani Ports share value jumped 15 per cent within the earlier session after it reported a robust 42 per cent 12 months-on-12 months (YoY) progress in November cargo volumes.
Year-to-date, Adani Ports share value has gained about 24 per cent.
In an change submitting on December 4, Adani Ports stated progress was witnessed throughout all three broad cargo classes – dry bulk (over 60 per cent YoY), containers (over 26 per cent) and liquids and fuel (over 23 per cent).
Following the corporate’s enterprise replace, a number of brokerage companies expressed their optimistic views on the inventory.
Among world brokerage companies, Citi maintained its purchase name on the inventory with a goal value of ₹1,213, reported CNBC-TV18.
“The company continues to execute well and grow its dominance in India’s port and logistics space. CY23 valuations have been suppressed due to negative news flow around the Adani Group. Despite rally post elections results, we think that there is still ample scope for valuations to rerate,” CNBC-TV18 quoted Citi saying.
Brokerage Kotak Institutional Equities reiterated its purchase name on the inventory and raised the goal value by 12 per cent to ₹1,060.
The brokerage agency expects a 20 per cent upside in Adani Ports over the following 12 months.
“History suggests the stock has traded in the range of 10-16 times one-year forward multiple for most of the past seven years. We value the company at an implied multiple of 13 times on a two-year forward basis,” Kotak stated.
“We increase our fair value (target price) by a higher 12 per cent to ₹1,060 on account of roll-forward and a lower (but still stiff) WACC (weighted average cost of capital) of 11.25 per cent. The stock trades at sub-12 times FY2025E EV/EBITDA and is the top pick within our transportation coverage. Buy for about 20 per cent upside over the next year,” stated Kotak.
Kotak elevated its EBITDA estimates by 5-6 per cent to account for larger quantity progress for Mundra, Dhanraj and Ennore ports.
“Over FY2023-26E, we expect 9 per cent, 10 per cent and 15 per cent volume CAGRs for Mundra, existing ports and overall portfolio, respectively. EBITDA CAGR would be higher at 21 per cent on account of realisation growth and margin expansion,” stated Kotak.
