10 Oct 2023: Shares of Adani Ports & Special Economic Zone (APSEZ) rose by 3% on Tuesday, October 10, 2023, after several brokerages expressed their optimism on the stock and raised their target prices.
Adani Ports’ stock started the day at a low of ₹799.95 per share on the BSE but later reached a high of ₹817 per share during the end of trading session.
- JM Financial has raised its target price on Adani Ports to Rs 850, implying an upside potential of 28% from the current market price.
- ICICIdirect has also raised its target price on the stock to Rs 800, suggesting an upside of 22%.
Other brokerages, such as Nuvama Institutional Equities and Kotak Institutional Equities, have also maintained their bullish stance on Adani Ports and have set target prices of Rs 956 and Rs 835, respectively.
The optimism among brokerages is driven by a number of factors, including:
- Adani Ports is India’s largest port operator by volume with a dominant 22% market share.
- The company is well-positioned to benefit from the strong growth in India’s trade and logistics sector.
- Adani Ports is also expanding its capacity and reach through both organic and inorganic growth initiatives.
In the recent quarter, Adani Ports reported a 5% year-on-year (YoY) rise in its consolidated net profit at Rs 1,159 crore. The company’s revenue also grew by 5% YoY to Rs 5,797 crore.
For the full year 2022-23, Adani Ports reported a 9% YoY rise in its net profit at Rs 5,310 crore. The company’s revenue also grew by 9% YoY to Rs 24,415 crore.
During the financial year 2023, Adani Ports bought a 70% share of Israel’s Haifa Port. They did this together with Israel’s Gadot Group, and it cost them $1.2 billion. Haifa Port is one of Israel’s two largest commercial ports and deals with about half of the country’s container cargo.
Adani Ports is a well-managed company with a strong track record of growth. The company is also backed by the powerful Adani Group. Given these factors, it is not surprising that brokerages are bullish on the stock and see a significant upside potential in it.
Disclaimer: This is not investment advice. Please do your own research before investing in any stock.
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