Shares of Adani group firms continued to attract heavy investors' demand on Wednesday, with Adani Ports and Special Economic Zone (APSEZ) saw a substantial increase, with its shares rising nearly 7 percent to reach its fresh 52 week-high of 1,082 per share on the BSE. This surge came after the global brokerage firm Citi revised the target price for the stock to Rs 1,213 per share from Rs 972, indicating a potential upside of more than 12 percent.
The Nifty50 component held a market capitalization of over Rs 2 lakh crore, today.
APSEZ Stock Jumps 24 percent in Week
APSEZ stock has soared by 24 percent in the past week, suprassing the Sensex's 4 percent rise.
During the latest session, the shares surged by 15 percent after the company reported a 42 percent year-on-year increase in cargo volumes for November.
Growth was witnessed across all three broad cargo categories – dry bulk (over 60 percent Y-o-Y), containers (over 26 percent) and liquids and gas (over 23percent), the company announced through an exchange filing on December 4.
Kotak Raises Target Price for Adani Ports,Sees 20 percent Upside; Recommends 'Buy'
On Tuesday, December 5, Domestic brokerage firm Kotak Institutional Equities suggested a 'Buy' for Adani Ports stock, projecting a 20 percent potential increase over the next year. They have revised its buy recommendation on the stock and increased the target price by 12 percent to Rs 1,060 per share.
The Brokerage firm said that they are increasing 12 percent in their fair value (target price) to Rs 1,060, citing a roll-forward and a lower yet significant WACC (weighted average cost of capital) of 11.25 percent.
The stock trades at sub-12 times FY2025E EV/EBITDA and is the top pick within their transportation coverage. Buy for about 20 percent upside over the next year, it added.
Kotak is expecting a volume Compound Annual Growth Rates (CAGRs) of 9 percent for Mundra, 10 percent for existing ports, and 15 percent for the overall portfolio from FY2023-26E. They project a higher EBITDA Compound Annual Growth Rate (CAGR) of 21 percent, on account of increased realization growth and margin expansion.