Kotak Institutional Equities maintained a “buy” rating on Adani Ports and Special Economic Zone (APSEZ), assigning a target price of Rs 1,750. This implies a potential upside of 21 percent from current market levels. The firm believes that APSEZ has made significant strides in reducing its external leverage over the past five years.

According to Kotak, the company has strategically invested $4 billion into new port assets over this period—four times the amount deployed in the five years prior. In addition to port infrastructure, Adani Ports has built a logistics asset base worth $2 billion. Analysts noted that this expansion was made possible due to higher capacity utilisation and a more efficient cost structure, which helped free up resources and improve returns.

Looking ahead, the upcoming capital expenditure is expected to be largely brownfield, allowing APSEZ to scale up without incurring disproportionately high costs. Analysts estimate that the logistics asset base could potentially double to $4 billion over the next five years. They also highlighted that the post-tax funding cost, including hedging, stands at around 8 percent, which is considered favourable for supporting long-term investments and potential equity payouts.

In operational performance, Adani Ports handled 41.8 million metric tonnes (MMT) of cargo in May, the highest monthly volume ever recorded by the company. This was driven primarily by container traffic, which rose 22 percent year-on-year, and dry cargo, which saw a 17 percent increase.

For the period covering year-to-date (YTD) May 2025, APSEZ handled a total of 79.3 MMT of cargo, representing a 10 percent year-on-year growth.

Adani Logistics, a key vertical under the group, also reported strong numbers for May. It recorded 0.06 million TEUs in rail volume, up 13 percent year-on-year, and 2.01 MMT in GPWIS volume, showing a 4 percent increase.

Several other brokerages have echoed Kotak’s positive outlook. Firms including Elara Securities, Motilal Oswal Financial Services (MOFSL), and InCred Equities have all reiterated their ‘Buy’ ratings on Adani Ports, with target prices going up to Rs 1,700. The consensus among these brokerages is that the company is well-positioned to benefit from continued expansion in both port throughput and logistics capacity.

MOFSL projects a 10 percent annual growth in cargo volumes from FY25 to FY27, which is expected to drive a compound annual growth rate (CAGR) of 16 percent across revenue, EBITDA, and profit after tax during the same period.

Elara Securities, meanwhile, expressed confidence in Adani Ports’ ability to capitalise on its logistics business, especially in a market that remains highly fragmented and operationally inefficient.