Adani Ports - Special Economic Zone Ltd.s market capitalisation has climbed to about $37 billion (Photo: Bloomberg)2 min read Last Updated : Jun 18 2024 | 11:33 AM ISTBy Khushi MalhotraShares of billionaire Gautam Adanis port operator are primed for further gains after high cargo volumes made it the worlds largest transport operations and services provider by market value.Adani Ports - Special Economic Zone Ltd.s market capitalisation has climbed to about $37 billion, overtaking peer Beijing-Shanghai High Speed Railway Co.
Rising cargoes and entry into Indias benchmark S-P BSE Sensex Index may extend its rally.Its the beginning of a journey for Adani Ports, said Deven Choksey, managing director at DRChoksey FinServ Pvt.
Expansion is becoming more natural for the company now that its generating cash and can already manage millions of metric tons of cargo, he said.Adani Ports handled about 27 per cent of Indias total cargo and around 44 per cent of container cargoes in the year to March 31, according to a company statement.
Its volumes increased 24 per cent from a year earlier, with ten of its domestic ports recording their highest-ever cargo volumes, the statement said.The companys acquisition appetite and strong balance sheet indicate further growth, said Priyankar Biswas, an analyst at BNP Paribas Securities India Pvt.
Adani Ports agreed to buy Indias Gopalpur port in March and purchased a majority stake in a Tanzanian container terminal earlier this month.The stock will also begin trading on Indias benchmark equity gauge starting Monday.
Its admission is expected to bring in flows of $252 million, according to Nuvama Alternative - Quantitative Research.Still, Adani Ports faces several risks following Indias election, according to Bloomberg Intelligence analyst Denise Wong.
Its stock fell more than 20 per cent on June 4 after Prime Minister Narendra Modis alliance won a surprisingly slim majority, though has since recouped some losses.Adani Ports may have an uncertain earnings growth outlook under Indias new coalition government, Wong wrote in a report.
Adani Group firms could also be vulnerable to renewed regulatory scrutiny.First Published: Jun 18 2024 | 11:24 AMIST