Adani Ports stocks: Adani Ports and Special Economic Zone shares have rebounded by 107% from their 52-week low over the past year. The stock hit its low of Rs 702.85 on June 23, 2023, but reached a record high of Rs 1,607.95 on June 3, 2024. However, it has since dipped by 10% from its peak. Over the year, Adani Ports shares have surged by 93.66%, and over two years, they have gained 116%. Over the last five years, the stock has seen a remarkable increase of 244%.
In the current trading session, Adani Ports shares were up by 1.11% at Rs 1446.20 on Tuesday.
The relative strength index (RSI) of Adani Ports stock stands at 55, indicating that it is neither in the overbought nor in the oversold zone.
The market capitalization of the firm surged to Rs 3.12 lakh crore on the BSE. Trading volume amounted to 1.74 lakh shares, totaling a turnover of Rs 25.39 crore on the BSE. The large-cap stock opened higher at Rs 1457.65 on the BSE.
With a one-year beta of 1.8, Adani Ports stock shows high volatility during the period. It is currently trading above its 5-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages.
Kotak Institutional Equities predicts continued outperformance in Adani Group stock in the long term, assigning a fair value of Rs 1,650 to the stock. -Adani Ports stocks
Despite a sluggish start to the year for the market, Adani Ports stock has shown consistent outperformance in the current fiscal year. This trend is expected to persist, driven by margin improvements. ADSEZ has a significant capacity advantage, estimated at 5-6 times its current capacity, while competitors would face higher capital costs to scale beyond twice their existing capacity. ADSEZ has already acquired most existing non-major concessions, limiting significant capacity additions. Our estimates are revised upward by 5%, with a revised fair value (FV) of Rs 1,650 (up from Rs 1,550). As per Kotak Institutional Equities, there are potential risks associated with the development of value from recent or additional investments in logistics and ports.
According to Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, “The stock has surged by over 40% year-to-date and has shown resilience against sell-offs. To initiate the next leg of upside movement, the price needs to demonstrate strong momentum above Rs 1,500. Until then, immediate support levels are seen at Rs 1,300, followed by critical support at Rs 1,100. Any weakness near these support levels could attract long-term accumulation. A breakout above Rs 1,500 could trigger a sharp rally towards Rs 1,700. -Adani Ports stocks
Osho Krishan, Senior Research Analyst, Technical & Derivatives at Angel One, commented, that Adani Ports has experienced a significant decline, entering its consolidation zone. Currently, Rs 1,150 is expected to provide support, and a breach of this level could disrupt the chart pattern. On the upside, resilience is seen around Rs 1,450-1,500 in the near term.
Jigar S Patel from Anand Rathi stated that support for Adani Ports is seen at Rs 1,420 with resistance at Rs 1,460. A decisive close above Rs 1,460 could lead to further upside towards Rs 1,500. The anticipated trading range for the week is between Rs 1,400 and Rs 1,520.
Meanwhile, InCred Equities has issued a ‘Reduce’ rating for the Adani Group stock. The brokerage has revised down its EBITDA estimates while maintaining margin projections for the firm.
InCred Equities mentioned that APSEZ’s cargo business is expected to grow at a rate of 8.5% annually over FY24-26. Although this growth estimate may appear lower than the 17.1% CAGR recorded over FY20-24, excluding acquisitions during FY21-24, the volume CAGR stands at 7.7%.
InCred Equities retained its target price of Rs 1,329 for the stock but downgraded its rating from Hold to Reduce.
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InCred Equities has reduced its EBITDA estimates for FY25/26F by 3% each while maintaining the target price at Rs 1,329. We anticipate an EBITDA CAGR of 14% over FY24-26F. APSEZ is currently trading at 18.2 times FY25F EV/Ebitda compared to the six-year average one-year forward EV/Ebitda of 14.1 times. Consequently, we are downgrading the stock’s rating to REDUCE (from earlier HOLD). Our target price implies a multiple of 15x FY26F EV/Ebitda. Upside risk: Potential growth exceeding our estimates, stated InCred Equities.
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