Adani Ports & Special Economic Zone Ltd. share price target

Logistics business to deliver robust revenue/EBITDA CAGR of 48%/ 53% over FY25-29E led by PUSH + PULL strategy

We attended the Adani Logistics Day event and visited the Tumb Inland Container Depot (ICD) in Gujarat. The Tumb ICD highlights the company’s strategic efforts to enhance logistics efficiency, reduce costs, and promote sustainability.

Adani Ports & SEZ (APSEZ) reported a revenue growth of 23% YoY to INR85b in 4QFY25 (in-line). Cargo volumes grew 8% YoY to 118mmt. The growth was primarily led by containers. In FY25, APSEZ managed ~27% of the country’s total cargo and ~45% of container cargo.

ADSEZ expands globally with non-cash acquisition of NQXT from promoter entity; deal results in 6.2% dilution for existing shareholders

APSEZ has announced the acquisition of Abbot Point Port Holdings Pte. Ltd (APPH), Singapore, from Carmichael Rail and Port Singapore Holdings Pte. Ltd (CRPSHPL) through a non-cash share-swap transaction. CRPSHPL is a related party.

Adani Ports & SEZ (APSEZ) handled 408.7mmt (+7% YoY) of cargo volumes over Ap’24-Feb’25 (11 months of FY25). During the same period, cargo volume handled at major ports in India grew ~3% YoY. Hence, APSEZ continues to grow over 2x the industry rate, driven by higher efficiency at existing ports and inorganic expansion along the eastern coastline of India.

We remain optimistic about ADANIPORTS’ growth prospects, supported by its integrated port-logistics model, capacity expansions, and international forays.

Adani Ports & SEZ (APSEZ) reported a revenue growth of 15% YoY to INR79.6b in 3QFY25 (our estimate was INR75b). Cargo volumes grew 4% YoY to 113mmt.

India's largest private port operator, expanding globally

Adani Ports & SEZ (APSEZ) reported a revenue growth of 6% YoY to INR70.7b in 2QFY25 (in line). Cargo volumes grew 10% YoY to 111mmt. The growth was primarily driven by containers (+19% YoY).

Adani Ports & SEZ (APSEZ) handled 183mmt of cargo volumes over AprAug’24. Volumes in 1QFY25 grew 7% YoY but were affected by a worker strike at Gangavaram port during Apr-May’24, which normalized in Jun’24.

Adani Ports & SEZ (APSEZ) reported a revenue growth of 11% YoY to INR69.6b in 1QFY25 (in line). Cargo volumes grew 8% YoY to 109mmt.

The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) has
retained power for the third consecutive term, albeit with a narrower majority
(293 seats) than expected.

Adani Ports & SEZ (APSEZ) reported a revenue growth of 19% YoY to
INR68.9b in 4QFY24 (in line). During the quarter, APSEZ recorded 26% YoY
growth in cargo volumes to reach 108.8 MMT.

We released our Initiating Coverage (IC) report on Adani Ports & SEZ Ltd
(APSEZ) in Oct’23 (LINK). In this report, we highlighted that the company’s
improving utilization levels at its current ports, along with its ramping up of
volumes at newly acquired ports, will position the company to exceed its FY24
volume guidance and expand its market share in cargo handling.