Adani Ports Shares: Kotak Gives 'Buy' Rating with ₹1,750 Target Price, Sees 21% Upside

Adani Ports and Special Economic Zone (APSEZ) has once again received a “Buy” rating from brokerage firm Kotak Institutional Equities. The brokerage has set a target price of ₹1,750, indicating a potential 21% upside from the current market price.

Significant Debt Reduction Over 5 Years

According to Kotak, Adani Ports has made strong progress in reducing its external debt over the last five years. During this period, the company has invested $4 billion in new port assets — which is four times the investment made in the previous five-year period.

Strong Position in Logistics Sector

Kotak also estimates that the company’s logistics asset base could double to $4 billion in the coming years. Additionally, the post-tax cost of funding, including hedging, stands at around 8%, which is favorable for long-term investments and potential equity payouts.

Record Performance in May

In May 2025, Adani Ports handled 41.8 million metric tonnes (MMT) of cargo — the highest-ever monthly cargo volume for the company. This growth was driven mainly by a 22% year-on-year increase in container traffic and a 17% rise in dry cargo.

From the beginning of the year to May 2025, APSEZ has handled a total of 79.3 MMT of cargo, reflecting 10% year-on-year growth.

Adani Logistics also performed well in May, recording 0.06 million TEUs of rail volume, a 13% growth year-on-year. Its GPWIS (General Purpose Wagon Investment Scheme) volume stood at 2.01 MMT, up 4% from the previous year.

Other Brokerages Also Bullish

In addition to Kotak, brokerages like Elara Securities, Motilal Oswal Financial Services (MOFSL), and InCred Equities have also maintained a “Buy” rating on Adani Ports. Their target prices go as high as ₹1,700.

According to MOFSL, the company’s cargo volume is expected to grow at 10% CAGR between FY25 and FY27. This is likely to result in a 16% CAGR growth in revenue, EBITDA, and net profit.

Elara Securities noted that Adani Ports could significantly benefit from its logistics business, especially given that the sector remains fragmented and relatively inefficient.

Reference from:-https://hindi.moneycontrol.com/news/markets/adani-ports-shares-may-rise-upto-21-percent-from-current-level-says-kotak-institutional-gives-buy-rating-1984941.html