ADANIPORTS - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental Analysis Summary

Adani Ports and Special Economic Zone (ADANIPORTS) stands out as a relatively balanced long-term investment candidate, combining scale, profitability, and moderate valuations with improving institutional sentiment.

Metric Value Interpretation

Market Cap ₹3,01,545 Cr Large-cap — strong infrastructure footprint

Stock P/E 28.0 Slight premium to industry PE (25.7) — justified by growth

PEG Ratio 1.03 Fairly valued — growth priced appropriately

ROE / ROCE 18.7% / 13.8% Strong capital efficiency — supports long-term compounding

Dividend Yield 0.50% Modest — adds a small income cushion

Debt-to-Equity 0.83 Manageable leverage — acceptable for infra sector

EPS ₹51.4 Strong earnings base

Book Value ₹288 Price-to-book ratio ~4.8× — premium, but justified by ROE

PAT Growth (QoQ) +19.3% Consistent profit growth — positive momentum

RSI / MACD 42.9 / -4.03 RSI neutral; MACD negative — short-term weakness

FII/DII Holding Change +0.10% / +0.42% Institutional accumulation — bullish signal

52W Price Range ₹994 – ₹1,605 Currently mid-range — not at ideal entry point

📉 Valuation & Entry Price Zone

With a PEG ratio near 1 and strong ROE/ROCE, ADANIPORTS is reasonably valued. Technical indicators suggest mild weakness, offering a potential accumulation opportunity.

Ideal Entry Zone: ₹1,280 – ₹1,350

This range is near the 200 DMA and offers a better margin of safety.

Watch for MACD crossover or RSI dip below 40 for technical confirmation.

🧭 If You Already Hold the Stock

Holding Strategy

Time Horizon: 3–5 years, given strong fundamentals and infrastructure tailwinds.

Exit Strategy: Consider trimming if price exceeds ₹1,600–₹1,650 without corresponding earnings growth.

Monitor: PAT trend, ROCE sustainability, and debt levels. If ROCE rises above 15% and PEG stays near 1, long-term outlook strengthens.

Key Triggers to Watch

PAT consistently above ₹3,000 Cr per quarter

ROCE improvement to >15%

Debt-to-equity staying below 1.0

🧠 Final Thoughts

ADANIPORTS offers a compelling mix of scale, profitability, and reasonable valuation. It’s one of the more balanced plays in the Adani group for long-term investors seeking infrastructure exposure with manageable risk.

Would you like a comparison with other logistics or infra players like Container Corp or GMR Ports to explore alternatives?

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