Goal: ₹1,590

CMP: ₹1,322.30

In our initiating protection report on Adani Ports & SEZ Ltd in Oct’23, we had highlighted that the corporate’s bettering utilisation ranges at its present ports, together with its ramping up of volumes at newly acquired ports, will place the corporate to exceed its FY24 quantity steering and develop its market share in cargo dealing with. We reiterated our sturdy conviction with APSEZ being one among our prime concepts for 2024.

APSEZ ended FY24 with 24 per cent quantity development in FY24 volumes, taking the entire volumes to 420 MMT, properly surpassing even its revised steering of 400 MMT. In FY24, about 25 per cent of all-India cargo volumes was routed via APSEZ ports. For FY25, the corporate is focusing on cargo volumes of 500 MMT.

Going ahead, APSEZ targets to turn into India’s largest built-in transport utility and world’s largest personal port firm by 2030. APSEZ has a diversified cargo combine and is seeking to improve cargo share of port on the east coast. The operational ramp-up on the lately acquired ports is predicted to drive a ten per cent development in cargo volumes over FY24-26. This may drive a income/EBITDA/PAT CAGR of 14/15/19 per cent over FY24-26.

We reiterate our Purchase ranking with a TP of ₹1,590 (premised on 17x FY26E EV/EBITDA)