Motilal Oswal' research report on Adani Ports and SEZ
Adani Ports & SEZ (APSEZ) entered into a definitive agreement with MSC Group's terminal arm, Terminal Investment Limited (TiL), for the sale of a 49% stake in Vizhinjam Port at an implied valuation of USD2.85b, with TiL investing USD1.397b. The partnership is expected to accelerate the port's ramp-up through improved cargo visibility, incremental transshipment volumes, and stronger access to Bangladesh and East Africa trade routes. APSEZ will retain a 51% stake and operational control, while the transaction strengthens Vizhinjam's position as India's leading transshipment hub and provides capital to support its ongoing capacity expansion from 1.6m TEUs to 5.7m TEUs by Dec’28.
Outlook
These factors reinforce APSEZ’s vision to become India’s largest integrated transport utility by 2031, with logistics and marine emerging as key growth engines alongside its core ports business. We reiterate our BUY rating with a TP of INR2,050 (based on 16x FY28E EV/EBITDA).
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Adani Ports - 0107026 - moti