Morgan Stanley extended the target price of Adani Ports, signs of growth in business model

New Delhi:
Morgan Stanley has increased its target price from Rs 1,415 to Rs 1,418 for Adani Ports and Special Economic Zone Ltd. for Adani Ports and Special Economic Zone Ltd.. Morgan Stanley has increased the target price, referring to the company’s flexible business model and diversified cargo and geographical mixture.

The brokerage firm has maintained a “overweight” rating on Apsez, which reflects the company’s strategic attitude to take advantage of its integrated business model to reduce the EBITDA sensitivity for cargo volumes.

Limited exposure to America

Apsez’s business model is considered flexible, with a better diversified cargo mixture and directly limited exposure to the US, which is less than 5% of the total cargo. According to Morgan Stanley estimates, the volume of Apsez in FY26 will increase by 13% to 510 million tonnes, which is operated in new capacity detail like Vizingam Port, WCT, Gopalpur and Tanzania.

The research note of Morgan Stanley states that India is likely to have a global share in goods exports, which is a good sign for cargo growth of Adani Ports. The strategy of taking advantage of integrated business model to reduce ebitda sensitivity for cargo volume is encouraging.

Time will be spent in trade deal with America

Brokerage also said that it may take some time for India’s trade agreement with America, but it is expected that it will happen. Which can help India to gain a share in American trade over the medium to long term. Domestic major indicators remain positive, which further support Apsez’s growth possibilities.

Target price of Adani Ports Rs 1418

Morgan Stanley has increased its price target from Rs 1,415 to Rs 1,418, as well as 3% cut in FY2026 and FY2027 income estimates, as Volume has decreased in FY2025, softening has been estimated for FY 2026-27.

The valuation has been extended from six months to March 2027, in which the Cost of Equity estimate has been reduced from 13% to 12.5%, which is due to increasing the risk free rate from 7% to 6.5%.