Adani Ports shares shed 3% after Q1 results. Here’s why Nomura and other brokerages see up to 24% upside

Shares of Adani Group agency Adani Ports and Particular Financial Zone (APSEZ) declined 3% to Rs 1,675.55 on the BSE on Thursday after the corporate reported a internet revenue of Rs 3,620 crore for the primary quarter of FY27, up 9% from Rs 3,315 crore in the identical interval final yr.

The corporate’s income from operations rose 18.5% year-on-year (YoY) to Rs 10,821 crore from Rs 9,126 crore within the corresponding quarter of the earlier monetary yr, Adani Ports mentioned in a regulatory submitting.

For the quarter underneath evaluate, Adani Ports reported EBITDA (earnings earlier than curiosity, tax, depreciation and amortisation) of Rs 6,540 crore, up 19% YoY from Rs 5,495 crore within the year-ago interval. The EBITDA margin stood at 60.4%, marginally increased than 60.2% within the corresponding quarter final yr.

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Nomura has maintained its Purchase ranking on Adani Ports and Particular Financial Zone (APSEZ) with a goal worth of Rs 2,080, implying an upside potential of round 21% from present ranges. The brokerage mentioned the corporate’s robust ports enterprise greater than offset the subdued efficiency of its logistics phase in the course of the June quarter. Nomura additionally famous that APSEZ’s pan-India container market share declined by 40 foundation factors sequentially on account of a one-off shift in transshipment site visitors to rival ports amid the Center East disaster, however expects the corporate to regain market share because the state of affairs normalises.

Nuvama has reiterated its Purchase ranking on Adani Ports and Particular Financial Zone (APSEZ) whereas elevating its goal worth to Rs 2,000 (16.2% upside) from Rs 1,920. The brokerage mentioned home ports income rose 12% year-on-year to Rs 6,660 crore, pushed primarily by a ten% improve in realisations to Rs 604 per tonne, whilst cargo volumes grew a modest 2% to 115 million tonnes, barely beneath its estimates.

Administration highlighted market share positive factors throughout east coast ports and expects volumes at Mundra to get well as these disruptions ease. Nuvama has broadly maintained its FY27 and FY28 EBITDA estimates and values the inventory at 16x June 2028 EV/EBITDA. It additionally famous that the corporate stays disciplined on acquisitions, evaluating abroad belongings provided that they’re earnings-accretive from day one, financed in native forex, generate long-term return on capital employed at or above APSEZ’s ranges, and strengthen its built-in port and logistics ecosystem.

Learn extra: Adani Group raises Rs 43,500 crore, now plans one other $3-4 billion in 6 months

Motilal Oswal has reiterated its Purchase ranking on Adani Ports and Particular Financial Zone (APSEZ) with a goal worth of Rs 2,130, implying an upside potential of round 24%. The brokerage mentioned APSEZ stays nicely positioned for future enlargement, backed by robust money flows, a wholesome money steadiness of Rs 12,400 crore, and a internet debt-to-EBITDA ratio of 1.9x.

It expects capability additions at key ports, ongoing infrastructure tasks, and international port acquisitions to help sustainable development in FY27 and past. Motilal Oswal has largely retained its FY27 and FY28 estimates and expects cargo volumes to develop at an 11% CAGR over FY26–28, driving income, EBITDA, and PAT CAGRs of 17%, 18%, and 21%, respectively, over the identical interval. The brokerage values the inventory at 17x FY28E EV/EBITDA.

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