Since global brokerage firm Citi increased its target price on the counter to Rs 1,213 apiece from Rs 972, implying an upside of over 12 percent, shares of Adani Ports and Special Economic Zone (APSEZ) surged 7 percent to reach a record high of Rs 1,082 per share on the BSE on December 6.

Adani Ports & SEZ’s stock has increased by over 23% in the last week, compared to a 4% increase in the benchmark Sensex.

Analysts at Citi emphasised that Adani Ports’ target upgrade was justified by the company’s continued strong performance and expansion of its dominance in India’s port and logistics sectors.

“We think there is still a lot of room for valuations to re-rate, even with the uptick following the results of the state election. “The brokerage firm shared a ‘buy’ rating and added, “The valuations in 2023 were suppressed due to negative news flow around the Adani Group.”

Analysts also think that Adani Ports’ logistics business is robust and that the company’s new projects are almost ready for commissioning.

A “buy” call on Adani Ports was also suggested in a previous note by domestic brokerage Kotak Institutional Equities, with a target price of Rs 1,060 per share.

“Adani Ports has increased its market share significantly; on an organic basis, it has grown three times, and overall, it has grown two times, the market’s growth of 7%. The brokerage firm stated, “Cargo diversification, the provision of an integrated service, and the realisation and sharing of operational efficiencies were the driving forces behind this.

Analysts raised the company’s projected volume and EBITDA by 4% and 6%, respectively, and added that it will perform well in a market that is picking up steam.

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