Buy Adani Ports and Special Economic Zone; target of Rs 2130: Motilal Oswal

Moneycontrol • 6 days ago

Original source

Key Investment Pillars

  • APSEZ's domestic market share stood at 27.6% as of Jun'26, with management highlighting that its domestic port volume growth over the past decade has been more than twice the industry growth rate.
  • The company has commissioned the Haldia bulk terminal in Mar'26, with a capacity of ~4mtpa and a draft of 8.5m, supported by a dedicated rail line and integrated conveyor system.
  • APSEZ has expanded its partnership with US-based Kaleris to accelerate AI-led automation across 15 container terminals spanning nine ports, as part of its broader plan to invest USD850m in technology and decarbonization by 2031.
  • The company has announced the acquisition of a 100% stake in JFIL from Jaiprakash Associates as part of the NCLT-approved resolution plan for JAL at an acquisition price of INR15b.

Thesis Validation Checklist

  • Investors should watch for signs of continued volume growth, particularly in dry cargo and containers, as well as the successful integration of recent acquisitions and partnerships.
  • The expansion of port capacity, including the development of new berths and terminals, will be crucial in supporting APSEZ's long-term growth ambitions.
  • Improving earnings visibility, driven by the ramp-up of new projects and the stabilization of margins, will be essential in validating the investment thesis.
  • The company's ability to maintain its market share and competitive position in the face of industry challenges and regulatory changes will also be important to monitor.