Shares of Adani Ports and Special Economic Zone Limited rose more than 2% after JPMorgan initiated coverage on India’s ports and logistics sector and assigned an overweight rating to the company with a target price of ₹1,944 per share.
The brokerage said the ports and logistics sector in India is supported by structural drivers such as rising trade volumes, capacity expansion and improving operational efficiencies.
JP Morgan stated that the sector could benefit from increasing global trade, infrastructure development and efficiency improvements that support higher capacity utilisation and operating leverage across port operators.
According to the brokerage, Adani Ports and JSW Infrastructure Limited have outperformed the benchmark Nifty 50 over the past three years. JP Morgan noted that Adani Ports has outperformed the index by around 70%, while JSW Infrastructure has outperformed it by around 68% during the same period.
JP Morgan expects Adani Ports to record revenue, EBITDA and profit after tax CAGR of about 17%, 15% and 16% respectively between FY25 and FY28.