This Adani Group stock has zoomed 40% in 5 weeks, hit new high today

The company said it is, now, targeting over 400 MMT of cargo volumes in FY24, surpassing the upper end of the guidance range (370-390 MMT) provided at the start of the current financial year

Shares of Adani Ports and Special Economic Zone (APSEZ) hit a new high of Rs 1,158.75, gaining 3 per cent on the BSE in Friday's intraday trade. The stock is extending its past week's rally which began after the company reported strong cargo volumes in December. In the past six days, the stock has rallied 14 per cent, while it has surged 40 per cent in the past five weeks.

APSEZ, a part of the globally diversified Adani Group, is the largest port developer and operator in India with seven strategically located ports and terminals on the West and the East coast of India each. APSEZ is representing 26 per cent of the country's total port volumes.

On January 2, APSEZ said its cargo volumes rose 42 per cent year-on-year (Y-o-Y) in December 2023 to 35.65 MMT (million metric tonne). According to its statement, 10 ports in the APSEZ portfolio delivered their highest-ever cargo volumes, recording new operating milestones.

The company said it, now, targets over 400 MMT of cargo volumes in FY24, surpassing the upper end of the guidance range (370-390 MMT) provided at the start of the current financial year.

In the first nine months (April to December) of FY24, APSEZ recorded healthy total cargo growth of 23 per cent Y-o-Y at around 311 MMT. The company crossed the 300-MMT cargo mark in just 266 days versus its previous best of 329 days in the previous financial year.

Motilal Oswal Financial Services (MOFSL) expects APSEZ to register 16 per cent volume growth over FY23-25 and revenue/Ebitda/PAT CAGR of 23 per cent/21 per cent/17 per cent over the same period. Further, with positive development at the Group level related to the Hindenburg case, the brokerage expects a re-rating in its valuation multiples.

"We anticipate sustained volume growth due to enhanced utilisation of current ports and favorable global trade trends. The company's strong market leadership in ports, focus on value-added areas such as logistics, and focus on strategic acquisitions position it favorably for the future," MOFSL said in a December 2023 report.