Buy Adani Ports and SEZ; target of Rs 1770: Motilal Oswal

Motilal Oswal's research report on Adani Ports and SEZ

In Oct’25, Adani Ports & SEZ (APSEZ) reported 6% YoY growth in cargo volumes, supported by a 24% rise in container volumes (driven by international volume and operationalization of new port). Total cargo handled in Oct’25 stood at 40.2mmt, while YTD volumes reached ~284mmt, with container volumes recording an average growth rate of ~22%. Adani Ports’ cargo mix is diversified across commodities and geographies; however, the growth and contribution of coal volumes have been declining, from ~38% of total cargo in FY24 to ~33% in FY25 and ~32% in 1HFY26. The decline in coal volumes is being offset by diversifying the cargo mix toward coastal coal and container volumes. At India level, volumes at major ports stood at 76.3mmt, up ~12% YoY. Container cargo at major ports increased ~13% YoY to 17.7mmt in Oct’25. Non-major port volumes fell 6.4% YoY in Oct’25 to 60.1mmt. Coal and POL, which together account for ~25% each of the commodity mix, declined ~13% and ~12% YoY, respectively.

Outlook

This positions APSEZ to achieve its goal of becoming India’s largest integrated transport utility by 2029, with logistics and marine emerging as key growth engines alongside its dominant ports franchise. We reiterate our BUY rating on the stock with a TP of INR1,770 (premised on 15x FY28E EV/EBITDA).