Mumbai: Adani Ports & Specification Economic Zone a joint stock company of the Adani group The company has become a target for investors as major brokers expect high numbers to increase. Institutional Equities has given an ‘outperformer’ recommendation on Adani Ports and has estimated at about 65 percent upside from current levels, targeting a price of around ₹1,960.
The new target price follows the company’s Investors’ Day event where Adani Ports established itself as a competitive and highly focused growth-orientated player in the logistics and port operations space.
Vizhinjam Port: A Technological Milestone
This report by Nuvama Institutional Equities reveals that Adani Ports have a future ready technological edge, which spans as far as the construction of the Vizhinjam Port in Kerala. From 2021 this port will be one of the first of South East Asia to be fully semi automated and hence putting the company, Adani Ports on the frontline of the new improved mechanised logistics.
Nuvama has estimated that the company’s cargo handling capacity will rise at a 12% annual rate and reach 1 billion tonnes by 2030. They also stressed on turn and foster required from logistics both container and non-container sectors for the organisation’s revenue.
In this regard, the roles of the forwarder and consolidator were further advanced as the key players in growing the logistics market of Bangladesh without costing the government any revenue loss in the process. Mr Modi flagged off mechanisation and technological advancement as key strategies that are likely to bolster the firm’s financial performance and balance sheet.
As per the bullish outlook by Nuvama, Adani Ports was trading at ₹1,211.65 on Monday was higher than the previous closing price of ₹1,190, while it was ₹1,194.50 during early hours. According to Nuvama, chances are high that it will hit ₹1,960 and this will be an upside of 65% to current price levels.
Every other brokerage firm has also echoed the same sentiments of optimism. Kotak Institutional Equities for target price of ₹1,630, while Motilal Oswal Financial Services for price of ₹1,530. Such estimations enhance the self assurance of investors, as they show high growth potential for the company.
Stocks of APSEZ Ltd have seen a dramatic movement of share price in September after bribery allegations incompliance with the Adani group associated with the APSEZ was reported in the United States of America. math : From its high of ₹1,500 in August 2024 to ₹995 on November 21, Palash’s securities have declined by roughly 33 %, or $ 497.
However, these remain issues and Adani Ports has only been able to regain ground and provide a 16% return to shareholders this year. The stock is cheaper by almost 28% to its high of ₹1,621 and has held up due to good fundamentals and investor wealth creation storey.
This current and future outlooks of Adani Port reveals that the company has recovered from the significant challenges that hit the Company earlier this year. This, coupled with its focus on technology advancements, its quest for greater production capacity, and wholesome port streamlines confidence in consistent profitability.
With the proposed Vizhinjam Port & other infrastructural expansion already on the anvil investors are now eyeing Adani Ports to grow as the key player in the global logistic & port management domain. It is with the help of such research that experts suggest that the growth storey of the stock in question is only beginning.
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