Emkay sees Indian Ports set for "strong decade"; bets on Adani, JSW Infra

According to Emkay, ports handle 95 per cnet of India's Export-Import (EXIM) trade by volume, making them central to the country's ambition of becoming a $10 trillion economy

Emkay Global Financial Services is upbeat on the Indian Ports sector, citing that the sector is entering a "structurally strong decade", supported by accelerating capacity additions, rapid privatisation, and a decisive regulatory push to strengthen multimodal connectivity and position India as a global maritime hub. 

 

The brokerage has initiated coverage on Adani Ports and JSW Infrastructure with ‘Buy’ and ‘Add’, respectively. It has further assigned a target price of ₹1,900 to Adani Ports and ₹300 to JSW Infrastructure.  

 

For Adani Ports, analysts expect a transition into an integrated logistics platform, structurally reducing the cyclicality linked to trade volumes. Brownfield expansions and global port ramp-up could keep the growth trajectory elevated without compromising on profitability.

 

For JSW Infrastructure, the company's current valuation already reflects the benefits of its rapid capacity expansion, which is strongly supported by the growth of its group businesses and faces minimal execution risks.

Why is Emkay upbeat on the Indian Port sector?

India’s ports sector is at an inflection point

According to Emkay, ports handle 95 per cent of India’s Export-Import (EXIM) trade by volume, making them central to the country’s ambition of becoming a $10 trillion economy.  To transform India into a global maritime hub, the Government of India (GoI) has targets to double container capacity by CY30 and expand overall cargo handling capacity to 10,000mntpa by CY47 from 2,700mm pa now.

 

The brokerage noted that India’s ports sector is at an inflection point, given rapid privatisation (enables higher automation and digitalisation), regulatory reform (positions it as a transhipment hub) and improved multimodal connectivity (lowers logistics cost to strengthen global competitiveness).

Privatisation drive: Big opportunity for private incumbents

To replicate the superior efficiencies of non-major ports, the GoI aims to increase privatisation at major ports, with a target that 85 per cent of cargo at major ports will be handled by private players by CY30. Emkay notes that the government is pushing privatisation to enhance cargo throughput by cutting turnaround times and capturing a larger share of container transshipment.

 

The strategic success of Vizhinjam port is highlighted by Emkay as a strong proof of concept, signalling a robust pipeline of investment opportunities in high-potential maritime infrastructure.

Incumbents building a logistics moat

Emkay argues that with supportive regulation and sustained private investments, Indian ports are upgrading infrastructure to improve throughput and deliver seamless multimodal solutions. Established private operators are also adding port capacity at a rapid pace, and expanding across the logistics chain via rail networks, MMLPs, warehousing, and CFS/ICDs.

 

These complementary capabilities are strengthening customer stickiness, increasing share of customer wallet, and enhancing profitability, creating a virtuous cycle for incumbents with strong execution track records. Robust financials and strong cash conversion, Emkay notes, support ongoing and future expansion without over-leveraging balance sheets.

 

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