Adani Ports stock gains on signing concession agreement for multipurpose terminal at Deendayal Port

In the past 12 months, Adani Ports stock has risen around 66 percent. In comparison, Nifty rose 28 percent during this period.

Adani Ports shares gained on September 12 as India’s biggest private port operator has signed a concession agreement with state-owned Deendayal Port Authority to equip and run a 5.7 million tonne (mt) capacity multipurpose terminal for handling clean cargo, including containers, at the port located in Gujarat's Kandla.

The Adani Group company won the 30-year contract in a tender by placing the highest royalty of Rs 200 a ton. The agreement was signed on September 10.

Adani Ports had in July received the letter of Intent for the development, operation and maintenance of the berth, which will be developed under the design, build, finance, operate, and transfer (DBFOT) model, the company said in a press release. The berth is likely to be commissioned in 2026-27.

"Berth No. 13 will diversify our presence at Deendayal Port. We will now handle multipurpose clean cargo at the port, in addition to dry bulk cargo that we already handle," Ashwani Gupta, whole-time director and CEO, Adani Ports, said.

The berth will consolidate the company’s position on the western coast and enhance its ability to service customers in Gujarat and north India.

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Adani Ports has incorporated a wholly owned subsidiary, DPA Container and Clean Cargo Terminal Ltd which will carry out operations at the berth.

The contract will strengthen Adani Ports' presence at the Deendayal Port, formerly Kandla Port, India’s second biggest state-owned port by volumes handled, where it runs a dry bulk cargo terminal at Tuna Tekra, a satellite facility since 2015, the company said.

The optimal capacity of the facility will be 5.7 mt comprising 4.2 mt of dry bulk (including break bulk), clean cargo and 0.10 million twenty-foot equivalent units or TEU’s. The multipurpose terminal is expected to handle machinery (project cargo), Ro-Ro cargo, sugar, salt, wooden logs, silica sand and containers.

Adani Ports shares ended 1.5 percent lower at Rs 1,431.70 on the National Stock Exchange (NSE) in the previous session. The stock has gained around 36 percent so far this year, outperforming Nifty's returns of 14 percent.

In the past 12 months, the counter has risen around 66 percent. In comparison, Nifty rose 28 percent during this period.

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