Buy Adani Ports and SEZ; target of Rs 1700: Motilal Oswal

Motilal Oswal is bullish on Adani Ports and SEZ recommended buy rating on the stock with a target price of Rs 1700 in its research report dated May 31, 2025.

Broker Research

June 04, 2025 / 14:43 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Adani Ports and SEZ

We attended the Adani Logistics Day event and visited the Tumb Inland Container Depot (ICD) in Gujarat. The Tumb ICD highlights the company’s strategic efforts to enhance logistics efficiency, reduce costs, and promote sustainability. In the next few years, Adani Ports & SEZ (APSEZ) is targeting a robust 50% revenue CAGR in its logistics vertical. The Tumb ICD, operated by Adani Logistics Ltd. (ALL), is strategically positioned as a critical logistics hub with robust infrastructure, connectivity, and cargo handling capabilities. With an annual capacity of 0.5m TEUs, it handled 0.3m TEUs in FY25 and is targeting 0.4m TEUs in FY26. Located near key consumption and industrial centers, Tumb ICD benefits significantly from its direct linkage to Jawaharlal Nehru Port Trust (JNPT), which enables a swift 18-hour turnaround—nearly 50% faster than traditional road transit. The facility supports a wide range of cargo types— chemicals, electrical goods, marbles, and apparel—demonstrating operational flexibility.

Outlook

APSEZ expects its overall logistics business to grow multifold over FY25-29, with revenue surging 5x to INR140b (INR28b in FY25) and generating an EBITDA of INR35b in FY29. The integration of the logistics business with the ports business is enhancing APSEZ’s service offerings and transforming the company into a transport utility. We reiterate our BUY rating with a revised TP of INR1,700 (implying 19% potential upside).

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