Adani Ports Share Jump 3% As Brokerages Bullish On Strong FY24 Volumes. Check Target Price

Shares of Adani Ports and Special Economic Zone Ltd jumped nearly 3 per cent in Tuesday’s early trade to hit their 52-week high of Rs 1,415 on the NSE after CITI reiterated its ‘buy’ rating on the counter for a target price of Rs 1,758.

CITI’s stock review comes on the back of a 24% year-on-year jump in Adani Ports’ cargo handling for FY2024 which includes those in the international ports. Out of the 420 MMT handled during this period, the largest Indian port handler saw a domestic contribution of over 408 MMT cargo, the company filing said.

The company also claimed to have handled its highest-ever monthly cargo volumes of over 38 MMT in March 2024. Mundra topped the charts among its ten of ports and terminals, handling cargo volumes of 180 MMT followed by Tuna 10 MMT, Hazira 26 MMT, Mormugao 5 MMT, Karaikal 12 MMT, Ennore 13 MMT, Kattupalli 12 MMT, Krishnapatnam 59 MMT, Gangavaram 37 MMT and Dhamra 43 MMT.

CITI in its review note said that it expects strong volume, revenue and EBITDA growth along with good cash flows in Q4. The company has emerged strong post the short-seller report last year with strong business momentum, reduced leverage and increased market dominance, the note said.

During FY24, more than one-fourth of all India cargo volumes were routed through APSEZ ports. This significant contribution by APSEZ underscores its active role in driving India’s growth trajectory. It also shows that India’s largest port operator comfortably surpassed its cargo volume guidance of 370 MMT – 390 MMT provided at the start of the financial year.

Commenting on APSEZ’s performance, Karan Adani, Managing Director, APSEZ, said, “While it took 14 years for the company to achieve the first 100 MMT of annual cargo throughput, the second and third 100 MMT throughputs were achieved in five years and three years. The latest 100 MMT mark has been achieved in less than two years. This is a testament to our ongoing commitment and efforts towards enhancing operational efficiencies and maintaining our position as a top port operator in the industry”.< ..

Morgan Stanley also maintained its ‘overweight’ call, with a target price of Rs 1,576 per share, indicating a 14.5 percent upside. The international broking firm said that the volume growth for the financial year gone by beat the guidance with eight on 10 ports reporting double-digit growth.

On April 1, Adani Port shares settled at Rs 1,375.90 per share, higher by 2.5 percent compared to the previous session’s closing price.