Adani Ports Shares Upbeat After Q4 As Several Brokerages Raise Price Target

Adani Ports‘ share price extended gains to the third straight session on Friday as the company’s March quarter results impressed analysts and investors.

What Happened: The Adani Group company reported a net profit of ₹2,040 crore for the January-March period, reflecting an increase of 76.2% compared to ₹1,157 crore in the same quarter last year. Revenue from operations during this period stood at ₹6,896.50 crore, marking a growth of around 19% from ₹5,797 crore recorded in the corresponding period last year.

Analyst Reactions: Citi maintained its “buy” rating for the stock raising the price target to ₹1,782 from ₹1,758. The target indicates an around 33% upside from the stock’s last closing price of ₹1,338.80. The brokerage said that the company posted a strong quarter with a bright guidance.

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HSBC also maintained its “buy” call on the stock with a price target of ₹1,560. HSBC said that the company’s guidance for FY25, implying a 10-14% growth rate is achievable. The brokerage forecasts a 15% EBITDA Compound Annual Growth Rate (CAGR) from FY24 to FY27.

Jefferies also maintained its “buy” rating for the Adani stock raising the target price to ₹1,640 from ₹1,425. The analysts noted that Adani Ports’ Q4 EBITDA was 5% lower than its expectations, primarily due to slightly lower realisations. However, the research firm highlighted that management commentary remains confident, signalling expectations for double-digit growth moving forward.

Kotak Securities also maintained its “buy” rating for the stock with a price target of ₹1,550. The brokerage said that Adani Ports saw a 25% year-on-year growth in port EBITDA, surpassing its expectations by 5%. The analysts added that the guidance indicates an expectation for continued outperformance, reflecting the company’s strong momentum and positive prospects in the port operations sector.

Price Action: Adani Ports’ share price was up 0.53% to trade at ₹1,345.85 as the markets opened on Friday.

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