This Adani Group stock has 22% upside potential, Investec says with 'buy' rating

Brokerage firm Investec has initiated coverage on Adani Ports and Special Economic Zone Ltd. with a 'Buy' rating and a price target of ₹1,715 on Monday, October 13.

Investec's price target implies a potential upside of 22% for the stock from Friday's closing levels. The price target is also well above the stock's recent peak of ₹1,494.

The brokerage wrote in its note that Adani Ports operates 17 ports and terminals, along with rapidly growing logistics and marine businesses. This integrated network gives the company a competitive edge, evident from the sharp volume and margin gains at its acquired assets.

Following the recent acquisition-led volume growth, Investec expects the next leg of expansion to come from scaling up existing ports, projecting a 15% revenue CAGR over FY25-30E.

This, the brokerage said, should enable APSEZ to generate strong cash flows, sustain its deleveraging trend, and retain flexibility to bid for new port concessions.

Investec said the stock looks attractively valued at 12 times its estimated Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA) for FY28.

Out of the 23 analysts that have coverage on Adani ports, 22 of them have a 'Buy' rating on the stock, while one has a 'Hold' recommendation.

Shares of Adani Ports are currently trading 0.42% lower at ₹1,403.50. The stock has risen 15% so far in 2025.

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