CMP: ₹1,280.95
Adani Ports and SEZ (ADSEZ) has persistently gained market share, pushed by natural development from its Gujarat-based ports and thru strategic acquisitions at cheap valuations. The turnaround of those acquired property has accelerated its market share features. We count on market share features to proceed as new acquisitions have circled (Karaikal and Dighi) and with the commissioning of recent property, specifically Vizhinjam, Colombo and Haldia.
To this point, ADSEZ has established a presence at Haifa (Israel), which is at one finish of the proposed IMEC (India Center East Hall). If there are acquisitions on the EU finish, ADSEZ’s potential to divert cargos from the geopolitically unstable Pink Sea-Suez area to IMEC might drive quantity development. Moreover, as ADSEZ goals to be an built-in logistics participant in India, we count on its market-share achieve in container rail (container and bulk) and warehousing to speed up in FY24-27.
We worth port property on a DCF foundation and estimate capex at INR60b p.a. and ROCE degree of 16 per cent to reach at our TP of ₹1,562. We provoke protection on ADSEZ with Outperformer.
Key dangers are weaker-than-estimated quantity supply and deteriorating Group’s financials, resulting in elevated share pledges.
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