Adani Ports’ share price surged up over 12% on Tuesday to hit a new 52-week high of ₹994, analysts at Kotak Securities see the Adani Group stock making more waves going forward.

The Adani Ports Analyst: Analysts at Kotak Securities issued a “buy” call for Adani Ports with a target price of ₹1,060. The target reflects a 20% upside from the stock’s last closing price of ₹878.75.

The Adani Ports Thesis: The brokerage firm in its note said that there has been a noteworthy expansion in the company’s market share, thanks to the realization and implementation of operational efficiencies, the provision of integrated services, and a strategic focus on cargo diversification.

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The brokerage added that this success has prompted an upward revision of volume and EBITDA estimates by 4% and 6%, respectively, as Adani Ports demonstrates consistent outperformance in a market that is gaining momentum.

The domestic brokerage said that the port major’s robust performance in November and year-to-date volumes have surpassed expectations. The firm also noted that the share of stable cargo volumes rebounded to 54% in FY23. “The brokerage said that incremental volume gains will be driven by Krishnapatnam, Gangavaram, Mundra and Dhamra ports in the remaining part of the year ending March 2023.”

Price Action: Adani Ports’ share price was up 12.97% to trade at ₹992.65 in the late hours of trading on Tuesday.

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