Jefferies raises Adani Ports price target to INR1,765 on volume growth

Published 10/07/2025, 13:24
Jefferies raises Adani Ports price target to INR1,765 on volume growth

Investing.com - Jefferies has raised its price target on Adani Ports & Special Economic Zone Ltd. (ADSEZ:IN) to INR1,765 from INR1,700 while maintaining a Buy rating, citing expected volume growth and expansion plans.

The company reported a 19% year-over-year increase in container volumes for the first quarter of fiscal year 2026, although its fiscal year 2025 total volumes of 450 million tons missed guidance due to coal volume declines and disruptions at its Gangavaram port.

Jefferies expects Adani Ports to benefit from full-year operations at Tanzania, Gopalpur, and Vizhinjam locations, along with the commissioning of Colombo West Container Terminal and volume growth recovery, particularly in the second half of fiscal year 2026.

The research firm noted Adani Ports’ ambitious target of reaching 1 billion tons of cargo volume by 2030, representing a 17% compound annual growth rate, through both domestic and international port operations. The company plans approximately INR700 billion in capital expenditure between fiscal years 2026 and 2029.

Jefferies’ new price target is based on 17x June 2027 EV/EBITDA, broadly in line with the 16.5x historical average, with the firm estimating a 12% compound annual growth rate in volumes from fiscal years 2025 to 2030 led by organic growth in domestic ports and increased international volumes.

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