Adani Ports and Special Economic Zone is targeting to double its cargo handling volume and reach 1 billion ton cargo by 2030 through organic growth, its management told analysts on Investor Day held at Vizhinjam Port in Kerala.
The ports operator is also planning up to ₹80,000 crore of capex over the next 4-5 years.
While domestic port cargo is seen rising 12 per cent annually, the company expects its logistics division to be a significant growth driver. The logistics business that supports container and non-container movement consists of warehouses and multimodal logistics parks, providing end-to-end services.
The company has guided for ₹36,500 EBITDA by FY29, which means 18 per cent annual growth between FY24 and FY29. Ports are expected to contribute 85-90 per cent of the total EBITDA. The EBITDA of the logistics business is seen rising 46 per cent annually over the same period to ₹3500 crore.
Nuvama Research estimated revenue growth of the company at 20 per cent annually on the back of price increase, service line increases, international and logistics growth.
In FY24 the company reported net profit of ₹8,104 crore on revenue of ₹26,710.6 crore, while EBITDA had come in at ₹15,751 crore.
Cargo volume
Domestic cargo volume is expected to be at 850 million ton in 2030, with the remaining coming from international ports such as Haifa, Sri Lanka and Tanzania. The growth target has not factored in any new ports, but from the existing ports with brownfield expansion.
The company has room to expand its capacity to 1.56 billion ton, while the current installed capacity is 633 million ton.
“We believe the company is very well placed to continue to outpace industry growth and gain market share,” said Motilal Oswal in a note. “The integration of the logistics business with the ports business is enhancing its service offerings and transforming the company into a transport utility,” it added.
Both Nuvama and Motilal Oswal have a ‘Buy’ recommendation on the stock with a target price of ₹1960-1530.
Adani Ports will also be participating in new opportunities such as Wadhavan Port, the proposed deep seaport in Maharashtra and a new transshipment port in the Andamans.
The first phase of Vizhinjam Port with a capacity of 1 million TEUs has been completed and the other phases are expected to be completed by 2028 with a total capacity of 3 million TEUs. The investment in the project so far has been ₹9000 crore, of which the company’s share has been ₹3500 crore.
Capex
Of the total planned capex till 2030, it will be spending ₹45,000-50,000 crore on domestic ports, ₹20,000-25,000 crore on logistics while another ₹5000 crore will be spent on maintenance capex.