Jefferies cuts target price for Adani Ports to Rs 1,440 from Rs 1,855 earlier

Jefferies has reiterated its Buy rating on Adani Ports but revised its target price downward to ₹1,440 from ₹1,855, citing weaker-than-expected volume growth in Q3 and 9MFY25.

Jefferies has reiterated its Buy rating on Adani Ports but revised its target price downward to ₹1,440 from ₹1,855, citing weaker-than-expected volume growth in Q3 and 9MFY25. The company posted Q3 volume growth of 3% YoY, while 9MFY25 volumes rose by 7% YoY, falling short of Jefferies’ estimate of 12%. The brokerage attributed this underperformance to weaker industry growth, which partially offset the company’s market share gains.

Jefferies highlighted Adani Ports’ ability to consistently gain market share, with its current share at 27%. The brokerage forecasts this figure to rise to over 30% by FY27, driven by the company’s robust infrastructure and operational efficiency. Despite revising its FY25-27 volume estimates down by 3%, Jefferies remains confident in Adani Ports’ ability to leverage its leadership position and capitalize on industry recovery. The brokerage also pointed to the company’s focus on efficiency improvements and strategic initiatives, which should support long-term growth even amid short-term challenges.