Synopsis:
Adani Ports & Special Economic Zone is in focus as Jefferies projects its share price to rise by another 34% citing better margins and strong focus on EBITDA growth.
The shares of this flagship company of Adani are back in spotlight after Jefferies shares that it is bullish on the stock as the company signals its strong focus on EBITDA growth.
With a market capitalization of Rs 2,92,526 crore, the shares of Adani Ports & Special Economic Zone Ltd are currently trading at Rs 1,354 per share, representing a 13 percent decline from its 52-week high of Rs 1,555.50 per share.
Leading global brokerage, Jefferies, has assigned a Buy call on the stock with a target price of Rs 1,815 per share, signaling an upside of 34 percent from its current market price of Rs 1,354 per share.
Jefferies cited that the company’s Q1 FY26 EBITDA was 14 percent higher than expected, mainly due to better margins in domestic ports and a strong 2 and 2.9 times YoY revenue growth in the logistics and marine segments, respectively.
Jefferies noted that the company is focusing on overall EBITDA growth rather than just increasing volumes. It aims to build a complete end-to-end logistics solution. The management also confirmed its FY26 volume guidance of 505–515 MMT, indicating a 12-14 percent growth compared to last year.
Q1 Highlights
Adani Ports reported a revenue of Rs 9,126 crore in Q1 FY26, up by 21 percent from its Q1 FY25 revenue of Rs 7,560 crore. Additionally, on a QoQ basis, its revenue grew by 8 percent from Rs 8,488 crore.
Coming to its profitability, the company reported a net profit growth of 7 percent to Rs 3,311 crore in Q1 FY26 as compared to Rs 3,107 crore in Q1 FY25. Additionally, on a QoQ basis, its profit grew by 10 percent from Rs 3,023 crore.
The stock delivered an ROE and ROCE of 18.71 percent and 13.80 percent respectively, and is currently trading at a P/E of 26.12x as compared to its industry average of 24.53x.
Adani Ports and Special Economic Zone Limited (APSEZ) stands out as a top player in India’s port operations, overseeing a variety of cargo terminals that handle everything from bulk goods to containers, liquids, LPG, LNG, and crude oil. Beyond port management, they also offer logistics services, including container rail transport, warehousing, and bulk cargo movement, while actively developing infrastructure within the Mundra SEZ. On top of that, APSEZ offers marine services, runs a dredging fleet, and has interests in railway corridors, land development, non-scheduled airline services, and even healthcare ventures.
Written by Satyajeet Mukherjee
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