Shares of Adani Ports extended gains to the third straight session on Tuesday as brokerages remained upbeat about the company’s prospects.

What Happened: HSBC maintained its “buy” rating for the stock with a price target of ₹1,560. The analysts said that the ports giant is a long-term play on India’s trade and infrastructure growth. The analysts expect the company’s sticky and diverse cargo to provide a buffer against near-term uncertainties.

The brokerage also added that the company showcased robust throüghput growth in the month of February. As per the analysts, the company is on track to beat its target of 400 million metric tonnes for the year ending March 2024.

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Motilal Oswal also maintained its “buy” rating for the stock with a target price of ₹1,600. The target implies an around 21% upside from the stock’s last closing price of ₹1,326.95. The brokerage also said that the company looks set to surpass 400 million metric tonnes guidance. The analyst noted that the company has already clocked in a cargo volume of 382 million metric tonnes in 11 months of FY24, recording 24% YoY growth on a YTD basis.

The analysts also highlighted that the impact of the Red Sea issue is not yet visible on the company’s volumes but if the situation persists for a longer term, it could have some impact on volumes. 10% of the company’s traffic comes through the Red Sea.

Price Action: Adani Ports’ share price was up 0.89% to trade at ₹1,338.70 shortly after market open on Tuesday.

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