Adani Ports and Special Economic Zone (APSEZ) has seen a surge in its share price after recovering over 87% following the shock from Hindenburg Research. Domestic and foreign brokers are positive about investing in Adani Ports. Experts predict that the share can climb up to 39% from the current level. Adani Ports’ core business of ports and logistics has seen an increase in EBITDA by 35% annually, and the company has strengthened its grip on the business by acquiring several entities in the financial year. The company’s port traffic has remained robust in the fiscal year 2023, increasing by 9% annually, and the company is now ready for the next phase of growth.
Global brokerage firm CLSA has maintained Adani Ports’ purchase rating, but has increased its target price from INR 792 to INR 878. On the other hand, another brokerage firm, Nomura, has given a buy rating on Adani Ports shares with a target price of INR 1025. Nomura believes that the company’s financial performance has been better than expected, and container volume in logistics can grow by 20-22%. The company’s management’s strategy is to keep at least 550 MMT (million metric tons) of shares by the fiscal year 2025, focusing more on delivery than growth.
ICICI Securities has suggested investing in Adani Ports for long-term growth, stating that the company’s growth is positive. The brokerage firm has advised investing in the company at a target price of INR 900. Although the company is focusing on strengthening its balance sheet rather than growth in the near term, it aims to reach 550 MMT by the fiscal year 2025.
Hindenburg Research had accused Adani Group of stock manipulation and accounting fraud, which the group denied. However, the price of Adani Ports’ shares had plunged to INR 394.95 on February 3, 2023, a year low since Hindenburg’s report was published on January 24, 2023. Since then, the company has recovered over 87%, and experts predict further bullish trends in the future.
Disclaimer: The advice or opinions given by experts or brokerage firms on Moneycontrol.com are their own, and the website or management is not responsible for it. Users are advised to seek certified expert advice before making any investment decisions.
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