Adani Ports and Special Economic Zone Ltd is a ports and shipping giant of Adani Group, and has outperformed both Sensex and Nifty in a month span. On March 13, the stock traded around Rs 1,120 levels, and it has the potential to surge nearly 25% ahead. Brokerage Motilal Oswal is the latest to recommend BUY. Adani Ports is also a multi-bagger with gains of more than 280% in 5 years span. Adani Ports is in focus as Fitch Ratings retained its rating on the company.

Adani Ports Share Price:

After market hours of March 13, Adani Ports’ share price closed at Rs 1117.75 apiece on BSE, down by 0.9% with a market cap of Rs 2,41,449.53 crore. During the trading hours, Adani shares zoomed to hit an intraday high of Rs 1139 apiece before correcting.

The stock’s 52-week high and low are at Rs 1,607.95 apiece and Rs 993.85 apiece respectively. While its price-to-equity ratio is at 101.43x, while its return on equity is around 8.09%. Adani Ports surged by 1% on a month-on-month basis, while in the long term, the stock has zoomed by 282% on BSE.

Adani Ports Fitch Rating:

On March 12, Fitch Ratings Adani Ports’ long-term foreign-currency issuer default rating (IDR to ‘BBB-‘ and removed it from Rating Watch Negative (RWN). The Outlook is Negative.

Fitch highlighted that the rating affirmation follows the demonstration of adequate funding access by the Adani group following the US indictment of certain board members of another group entity, Adani Green Energy Limited (AGEL), on 20 November 2024.

In Fitch’s view, “We believe the risk associated with the group’s liquidity and funding requirements has moderated. However, the Negative Outlook reflects our view that the proceedings and outcome of the US investigations could reveal further weaknesses in the group’s corporate governance practices, which may lead to negative rating action in the near to medium term. Fitch will monitor the investigations for any evidence of weakness in the entities’ governance practices and internal controls, and the impact on APSEZ’s financial flexibility.”

However, the rating continues to reflect APSEZ’s strong business and financial profile, underpinned by a robust portfolio of seaports and adequate liquidity position. Its cash balance of INR77 billion as of December 2024 and strong operating cash flow should cover debt maturities of INR66 billion during the financial year ending March 2026 (FY26) and fund its capex. The company also benefits from flexibility in the pace of execution of its expansion projects, as per the rating agency.

Motilal Oswal On Adani Ports:

Motilal Oswal in its latest report said APSEZ is anticipated to outpace India’s overall growth, driven by a balanced port mix along India’s western and eastern coastlines and a diversified cargo mix. The company continues to invest heavily in the ports and logistics business to drive growth. The commencement of operations at Gopalpur and Vizhinjham Ports will enable the company to further boost volumes.

On the valuation, Motilal’s note said, “We believe the company is well placed to continue outpacing industry growth and gaining market share. Further, the logistics business will serve as a value addition to the domestic port business, with a focus on enhancing last-mile connectivity. We expect APSEZ to report 10% growth in cargo volumes over FY24-27. This would drive a CAGR of 14%/15%/19% in revenue/EBITDA/PAT over FY24-27. We reiterate our BUY rating with a TP of INR1,400 (premised on 15x Sep’26E EV/EBITDA).”

At the current market price, Adani Ports has the potential of more than 25% upside ahead.

Among corporate actions, Adani Ports holds a healthy record of dividend payout and has split only once.

Dividend: The ports giant has distributed about 21 dividends since September 2008, as per Trendlyne data. In the last 12 months, the dividend payout is to the tune of Rs 6 per share. Currently, it has a dividend yield of 0.53%.

Stock Split: Adani Ports has split only once and that was in 2010. The stock’s face value of Rs 10 each was split to Rs 2 each on September 24, 2010, hence the ratio was 1.5.