Adani Ports share price rises 6%: Here are 3 key reasons why Jefferies expects 10% more upside
Stock Market Today: Adani Ports share price gained more than 6% in the intraday trades on Monday and closed at ₹1346 levels on the BSE. Here are key reasons why Jefferies expects 10% more upside for the stock.
Adani Ports share price- 3 Key reasons why Jefferies Expects 10% upside
Management commentary focused on absolute Earnings before Interest TAx depreciation and growth as per Jefferies as the company intends to deliver end-to-end solutions versus pure volume-driven growth. FY26 estimated volume guidance at 505-515 Million Tonne (12-14% year on year) is in line with our estimates. They have raise their FY26E-27 Ebita estimates by 3-4% to reflect the margin-led beat. and have a revised target price of ₹1475 which means almost 10% more uppside from current levels of ₹1346
2. Strong EBITDA growth guidance for FY26: It is the Volume growth, benefits of integrated utility play, ramp-up of Marine and logistics business, and operating leverage will drive Ebitda growth, highlighted Jefferies. Trucking and Marine businesses are targeted to grow at 3-4 times and 2 times, respectively as per them. Management has guided for Rs110-120 billion in FY26 estimates capex with majority for domestic ports and some international ports, capacity enhancement in logistics , Marine (5%), and digitisation (12%) towards capacity addition and operational efficiency, they added
3.Opening up new avenues for growth:
The management reaffirmed its goal of 1 billion tons of cargo volume between domestic and foreign ports by 2030, implying a 17% compound annual growth rate.
By utilizing its port network and capacity expansion in both physical and digital infrastructure, the company is committed to offering end users comprehensive logistics solutions., highlighted analysts
The business started offering trucking and international freight network services in FY25 using a low-asset approach, and it plans to take advantage of alliances with shipping lines.
In Marine, Adani Ports and Special Economic Zone Ltd targets a 3 times Ebitda rise over FY25-27 to Rs17 00 crore plus , focusing on the Middle East, South East Asia, and West Africa. Logistics and International ports, highlighted Jefferies
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