Adani Ports & Special EZ (ADSEZ) – Update
Adani Ports and Special Economic Zone (ADSEZ) develops, operates and maintains port and port-based related infrastructure services. Also, it controls the multi-product special economic zone. It is India’s largest multi-port operator with an annual cargo handling capacity of 112.75 Mn MT. The company’s objective is to increase the volume handled by 2020 to to 200 Mn MT by 2020.
In the last 5 years, ADSEZ’s has increased its share in the Indian container traffic by about 110 % to 23% of the current total volume. Further healthy volume growth in container traffic from Mundra is expected due to capacity constraints at other major ports on the west coast.
ADSEZ is the owner of a large number of port import facilities for coal. With an ever higher demand for electricity across India, utility companies such as Tata Power and Adani Power should drive the utilization ratio of its port infrastructure.
We have a favorable outlook for the company’s business and set the target price at INR 370.00