Buy Adani Ports; target of Rs 351:Edelweiss

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26 Aug, 2025 12:21

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Edelweiss's reserach report on Adani PortsAdani Ports and SEZ’s (APSEZ) Q2FY16 consolidated PAT at INR6.7bn came in line with our estimate, boosted by ~INR3.1bn SEZ revenue, negating the impact of lower volumes—37MT versus ~42MT estimate. Management reiterated impact of lower coal imports on cargo volumes to be mitigated largely by coastal shipping as well as imports by coastal power plants (AEL coal trading volume growth vindicates this). We continue to believe that APSEZ will not only leverage its strong assetbased balance sheet, but also its expertise to pursue growth opportunities. We have recalibrated volumes, resulting in revised target price of INR351 (INR367 earlier). Maintain ‘BUY’.Management is confident of sustaining cargo outperformance across its ports despite moderation in cargo volumes. We believe APSEZ will leverage its asset portfolio and balance sheet to pursue growth opportunities, especially inorganic, which are not factored in our valuations. Factoring in gradual cargo ramp up in some of the subsidiaries, we have cut FY16E and FY17E earnings 8.5% and 6.0%, respectively, resulting in revised SoTP-based target price of INR351. We maintain ‘BUY/SO’.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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