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Shares of Adani Ports and Special Economic Zone (APSEZ) have remained at traders radar recently as the Adani Group stocks rose for straight three session since Friday after the Supreme Court appointed AM Sapre committee suggested it was not possible to conclude that there was a regulatory failure on the Hindenburg’s price manipulation allegation. Shares of Adani Ports surged over 18 per cent in the last three sessions to Rs 785.95 on Tuesday, May 24 from Rs 665 on Friday, May 19. However, the stock saw some profit booking to drop 2 per cent lower to 719.40 on Wednesday, May 24. Shares of Adani Ports have surged about 85 per cent from its 52-week lows at Rs 394.94 on February 3, 2023. However, the stock is still over 27 per cent below its 52-week high at Rs 987.90, hit on September 20, 2022. GQG Partners chairman and chief investment officer Rajiv Jain said on Tuesday that the US boutique investment firm has raised its stake in the Adani group by 10 per cent and its total holdings in the conglomerate now stand at $3.5 billion. Jain, in an interview with Bloomberg, called Adani Group stock as ‘the best infrastructure assets available in India’. After this sudden spurt in Adani Ports shares, investors are worried if they shall look at the counter and let it go after the recent rise. Decoding the charts, Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking said that Adani Ports on its quarterly charts has seen a smart recovery, post a panic fall in prices in last quarter, which hit its major support zone placed at Rs 420-370 levels. It can be observed that the stock is into a broader range of Rs 630-820 on quarterly closing basis from the past nine quarters including the current quarter. “So overall the structure looks positive & this stock is likely to be an outperformer among the Adani group of stocks going forward. Investors should continue to hold on to their long positions as the stock is likely to resume its next leg of up move in coming 1-2 quarters with a huge upside potential target projected at Rs 1,330 levels” he said.
For long-time investors, this could be a potential opportunity to enter with a view of averaging near the Rs 510-550 range in case the price shows a dip in futures, said VLA Ambala, Research Analyst at Stock Market Today. “Our short-term given targets have been achieved which were between Rs 710 and Rs 745 with a stop loss placed at Rs 590. For long-term to mid-term, targets that we could see in it are between Rs 850 and Rs 1,250 with a strict stop loss point at Rs 460,” he said. Not just the chartists, even the fundamental analysts are positive on the stock but with a long term view. However, their target suggests the stock’s 52-week high is still a far-fetched view. Sachin Jasuja Founding Partner, Equities at Centricity Wealthtech said that despite valuation concerns for Adani Group companies, Adani Ports looks reasonable as the company generates cash flows on a timely basis compared to other group peers. Global brokerage firm Jefferies said that Adani Ports is India’s largest port operator by volume with a dominant 22 per cent market share. It is also looking to grow in logistics/warehousing to offer customers end-to-end solutions, it said with a ‘buy’ rating and a target price of Rs 800 on the stock. “Operationally, Adani Ports is continuing to move from strength to strength, with market share moving up to 22 per cent from 14 per cent in FY15 and expected to be 31 per cent by FY25E. As core port Ebitda growth remains upward of double digits, backed by volumes, we remain positive on the stock,” Jefferies added. Domestic Brokerage firm Kotak Institutional Equities has a buy rating on the stock with a target price of Rs 810 apiece, while ICICI Direct gave the stock a ‘buy’ in April 2023, with a target price of Rs 800 after the company announced its performance for the March 2023 quarter.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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