Adani Ports shares rise 169% from 52-week low; can they breach record high?

Shares of Adani Ports and Special Economic Zone Ltd are trading near record high. The Adani Group stock has recovered 169% from its 52-week low hit in February 2023. With the current leg of rally, it looks set to end 2023 on a high note. Adani Ports shares fell to their 52 week low of Rs 394.95 on February 3, 2023. They touched their record high of Rs 1082.95 on December 6 this year.

adaniports-share-price-363228">Adani Ports shares ended 2.04% higher at Rs 1063.65 on Wednesday, marginally lower than the record high hit a few sessions ago.

With the stock closing above the Rs 1,000 mark for the seventh straight session, investors would be guessing for how long the Adani Group scrip can maintain the winning momentum.

However, the Adani Ports stock could also be in for a correction, indicates its relative strength index (RSI) data. Currently, the RSI trades above the 70 mark, which indicates it is trading in the overbought zone. With RSI at 84.5, the stock has a lot more buyers than the sellers.

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In the last session, market cap of the firm rose to Rs 2.29 lakh crore on BSE. Total 10.39 lakh shares of the firm changed hands amounting to a highet turnover of Rs 43.69 crore on BSE. The large cap stock opened higher at Rs 1084.50 on BSE. Adani Ports shares have gained 18.74 per cent in one year and risen 29.30 per cent since the beginning of this year.

Adani Ports stock has a one-year beta of 0.5, indicating very low volatility during the period. Adani Ports shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

Brokerage Motilal Oswal has retained its 'Buy' rating on Adani Ports stock. It has revised price target for the Adani Group stock to Rs 1,210 based on 16 times FY25 EV/Ebitda estimates.

"We have increased our volume estimates by 2 per cent to 410 mmt for FY24. We now expect Adani Ports to register 16 per cent volume growth over FY23-25 and revenue, Ebitda and PAT CAGRs of 23 per cent, 21 per cent and 17 per cent over the same period," said Motilal Oswal Securities.

Kotak Institutional Equities has raised its EBITDA estimates for the Gautam Adani-led company by 5-6 per cent, accounting for likely higher volume growth for Mundra, Dhanraj and Ennore ports. Kotak expects Adani Ports to clock 9 per cent volume CAGR (compounded annual growth rate) for Mundra, 10 per cent per cent for existing ports and 15 per cent volume CAGR for the overall portfolio over FY2023-26.

Kotak said it sees EBITDA CAGR for Adani Ports at 21 per cent on the back of realisation growth and margin expansion. The brokerage sees Rs 1,060 as a fair value for the stock.

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