Prabhudas Lilladher's research report on Adani Port and SEZ
ADSEZ has entered into a definitive agreement with Terminal Investment Ltd (TiL), the terminal operating arm of Mediterranean Shipping Company (MSC), to sell 49% stake in Adani Vizhinjam Port Pvt Ltd (AVPPL) at a valuation of US$2.85bn. TiL will invest ~US$1.4bn in 2 tranches: US$539mn toward acquisition of the 49% stake, which will be paid upfront post receiving regulatory approvals, and US$858mn post completion of Phase 2 expansion, toward funding its proportionate share of capex, expected to be completed by Dec'28. This agreement is in alignment with the concession agreement and subject to receipt of statutory and other approvals (e.g., Kerala government). Post transaction, ADSEZ will retain management control (51% stake) and consolidate AVPPL as its subsidiary. The deal represents the largest foreign private investment in Indian port infrastructure and marks the 3 rd strategic partnership between ADSEZ and TiL after the successful collaborations at Mundra (CT-3) and Ennore.
Outlook
We expect ADSEZ to deliver volume/EBITDA CAGR of 12%/15% over FY26-28E. The stock is trading at EV of 17x/14.4x of FY27/28E EBITDA. Maintain ‘BUY’ with revised TP of INR2,123 (earlier INR1,879) valuing at 18x EV of Mar’28E EBITDA (16x assigned earlier).
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Adani Port - 0107026 - prabhu