HSBC has raised Adani Ports and Special Economic Zone Ltd.'s target price to ₹2,200 from ₹1,950 and reiterated its 'buy' rating, according to reports from CNBC TV18. The revised target price represents the highest among analysts tracked by Bloomberg, with the revised price target implying an upside potential of 21% from current levels. Adani Ports shares gained 0.6% to ₹1,832 on Wednesday following the announcement, with the stock having gained 23.7% so far this year. The brokerage cited stronger operations, lower debt, and improved disclosures as key factors supporting the upward revision.
According to CNBC TV18, Adani Ports' overall cargo volume in June increased 13% to 46.9 million metric tonnes from the previous year. The growth was led by the containers segment, where volumes increased 18%, while the liquids business was up 11% from the year-ago period. HSBC highlighted that the company is well positioned to benefit from above-market organic domestic port growth, rising cargo volumes, and expansion of its integrated logistics business, as reported by Essential Business Intelligence.
Last month, Adani Ports announced a definitive agreement with Terminal Investment Ltd. (TiL), the container terminal operating arm of the MSC Group to acquire a 49% interest in Adani Vizhinjam Port Pvt. Ltd. (AVPPL). The total value of the deal is $2.85 billion, with TiL's commitment of $1,397 billion representing its proportionate 49% share of the total deal value. HSBC expects the company's share of India's cargo handling market to increase to 17% by FY31 from 13% in FY26, driven by steady organic growth and strategic partnerships. The brokerage forecasts Adani Ports' FY31 EBITDA of about ₹49,000 crore, around 5% above Bloomberg consensus.
Kerala Chief Minister V.D. Satheesan has signaled support for expanding Adani Ports' ambitious deepwater port project at Vizhinjam, despite initially objecting to the proposed stake sale. As reported by Bloomberg News, Satheesan stated that "It has to be expanded. Outside the harbor also" and confirmed that the state is acquiring additional land for supporting infrastructure and providing property for container stations. His comments came days after objecting to MSC Mediterranean Shipping Company SA's planned $1.4 billion investment that would give the Swiss shipping company a 49% stake in the project. The Chief Minister clarified that Kerala's objection was limited to the stake-sale proposal being submitted to India's market regulator without prior consultation, with a panel reviewing the proposal to ensure Kerala's interests are protected.
