Adani Ports & SEZ Stake Sale In Vizhinjam Port: Financially Value Accretive & Strategically Sound

Research evidence excerpt

Adani Ports & SEZ Stake Sale In Vizhinjam Port: Financially Value Accretive & Strategically Sound

Atul Tiwari AC Asia Pacific Equity Research

(91-22) 6157-3582 30 June 2026 J P M O R G A N

atul.tiwari@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

Adani Ports and Special Economic Zone (APSEZ) is India’s

largest private port operator, commanding a ~28% domestic

cargo market share and 46% container share, with unmatched

scale across 15 domestic and 4 international ports. APSEZ

benefits from first mover advantage, scale, wide geographical

presence, a high level of efficiency, and well-entrenched

customer relationships in India’s port sector. APSEZ has also

forayed into and rapidly ramped up its logistics business in India.

International foray is also a driver of growth going ahead. We

YTD 1m 3m 12m believe all these growth pillars will continue to drive industry

Abs 19.9% -1.6% 32.8% 23.3% leading revenue, EBITDA and PAT growth with healthy RoCEs

Rel 28.3% -3.3% 27.8% 29.5%

and cash flows. We have an Overweight rating on the shares.

Company Data

Shares O/S (mn) 2,160

52-week range (Rs) 1,857.80-1,290.50 Valuation

Market cap ($ mn) 40,641 We set APSEZ’s Mar-28 PT at Rs2,000 using 17x EV/EBITDA

Exchange rate 94.40

Free float (%) 34.1% on FY28E EBITDA. 17X EV/EBITDA is at a ~5% premium to

3M ADV (mn) 4.10 the average over the past 2 years to account for improving

3M ADV ($ mn) 72.0 ROCEs and the scale-up in international and logistics businesses

Volatility (90 Day) 32

Index NIFTY and is supported by FY26-FY29E Revenue / EBITDA / PAT

BBG ANR (Buy | Hold | Sell) 26|1|0 CAGRs of 15% /13%/ 17% and average RoCE of ~13%.

Key Metrics (FYE Mar)

Rs in billions FY26A FY27E FY28E FY29E Performance Drivers

Financial Estimates