RESULT

Adani Ports and SEZ (ADSEZ) BUY

Transportation
CMP(₹): 1,590 Fair Value(₹): 1,710 Sector View: Attractive NIFTY-50: 25,011 August 01, 2024

Outperformance continues; profitability improves Company data and valuation summary

The in-line and healthy operational print suggests that ADSEZ (1) continues Stock data
to grow at >2X market growth and (2) has seen a reasonable uptick in
CMP(Rs)/FV(Rs)/Rating 1,590/1,710/BUY
profitability in domestic ports. Momentum seen in volume growth would
52-week range (Rs) (high-low) 1,621-752
strengthen with scale-up/start of operations at new ports. Improvement in
Mcap (bn) (Rs/US$) 3,435/41.0
profitability would likely be a medium-term trend given large port capacity
ADTV-3M (mn) (Rs/US$) 8,591/102.6
land bank and efficiency gains from investment in digitalization. Build-up in
logistics assets continues. We broadly retain estimates and roll forward to Shareholding pattern (%)
Fair Value of Rs1,710 (from Rs1,650).
4.72.8
In-line print; 13% volume growth,73% port margin adjusted for Gangavaram loss 8.5
3.1
ADSEZ reported a steady 7%/13%/13%/24% yoy growth in port volumes/port
15.0
revenues/port EBITDA/PBT after adjusting for the one-time contribution from 65.9
stake sale in Ennore Port. The same was aligned to other estimates on most
metrics with PBT beat of 7% driven by high-than-expected other income. The
metrics are impacted to the extent of 5-7% on account of strike that happened Promoters FPIs MFs BFI s Retail Others

at Gangavaram port—(1) adjusted port volume growth at ~13% would have been

Private Circulation Only. This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities A ct of 1933
Price performance (%) 1M 3M 12M
>2X of the ~5.5% growth in the country’s volumes and (2) adjusted port EBITDA
Absolute 8 20 108
margin would have been ~73% versus ~72% reported (~150 bps yoy increase).
Rel. to Nifty 4 9 81
ADSEZ is maintaining its growth guidance of high single-digit to low doubt-digit Rel. to MSCI India 4 8 71
across various metrics. We are slightly above their guidance across metrics.
Forecasts/Valuations 2024 2025E 2026E
Share in incremental port volumes at 2X existing market share EPS (Rs) 41.6 53.8 63.5
APSEZ handled ~27%/46% of the country’s total/container cargo in the quarter— EPS growth (%) 8.1 29.1 18.0

appears to have had ~53%/60% share in incremental total/container cargo on a P/E (X) 38.2 29.6 25.1

yoy basis. Note that current market share in total cargo volumes in India has P/B (X) 6.5 5.5 4.6

been 27% for the quarter. The company attributed such recent trend of marked EV/EBITDA (X) 24.1 20.2 17.1

outperformance to a combination of (1) breadth of its presence along the RoE (%) 18.3 20.0 19.9

hinterland, (2) offering an ecosystem rather than a mere functional port service, Div. yield (%) 0.3 0.5 0.5

(3) multi-modal connectivity and (4) efficiency improvements. It is on the latter Sales (Rs bn) 267 313 349

two subjects that the company continues to invest into. On the logistics front, it EBITDA (Rs bn) 159 188 218

has taken up its rake count to 131 (from 127 qoq) and stated target to reaching Net profits (Rs bn) 90 116 137

300 rakes by FY2029. It has also added 2.4 mn sq. ft of warehousing capacity Source: Bloomberg, Company data, Kotak Institutional Equities estimates
and aims to take such capacity 7X to 20 mn sq. ft by FY2029. On the efficiency Prices in this report are based on the market close of
front, the company continues to invest in digitalization and in systems for August 01, 2024
providing integrated and traceable port+logistics offering.

Margin improvement can be a medium-term phenomenon

Beyond efficiency gains from digitalization and other means, we note prospects
of port EBITDA margin improving to higher levels. Key driver of the same is the
large port capacity bank that ADSEZ possesses. In essence, ADSEZ can grow
its current capacity 5-6X through brownfield capacity expansions and thus
improve its cost structure. It has bought most large and scalable port/logistics
assets from the market already. Its peers cannot grow current capacity by more
than 1.5X without having to either buy small operational terminals on offer from
the Makor ports or investment in new greenfield assets, both of which will add
to their cost structure. Full sector coverage on KINSITE

Aditya Mongia Deepak Krishnan Sai Siddhardha P

 2

We broadly retain estimates and roll forward to Rs1,710 FV

We marginally cut our volume estimates by 2% on lower growth in Ennore port and in Haifa port. The
same is compensated by higher port margin estimates. We roll forward to September 2025E DCF-based
FV of Rs1,710 (From Rs1,650). Our FV implied one-year forward EV/EBITDA of 18.5X.

ADSEZ reported an in-line revenue/EBITDA growth at 11%/13%, post adjusting for Ennore port stake sale in the quarter
Adani Port and SEZ (consolidated), March fiscal year-end, 1QFY25 (Rs mn)
% change
1QFY25 1QFY25A 1QFY25E 1QFY24 4QFY24 Adj. vs est. Adj. yoy Actual yoy Adj. qoq FY2025E FY2024 % change
Net operating income 75,596 69,566 69,973 62,476 68,965 (0.6) 11.3 21 0.9 312,847 267,106 17
Operating expenses (18,666) (18,666) (16,266) (17,965) — (71,163)
Employee costs (4,693) (4,693) (5,015) (4,385) — (18,969)
Admin and other exp. (3,760) (3,760) (3,658) (6,177) — (18,339)
Total expenditure (27,118) (27,118) (27,289) (24,939) (28,527) (0.6) 8.7 8.7 (4.9) (124,584) (108,471) 14.9
EBITDA 48,478 42,448 42,683 37,537 40,439 (0.6) 13.1 29 5 188,264 158,634 19
Other income 4,946 4,946 3,694 3,837 3,034 16,623 14,994
Interest expense (6,554) (6,554) (6,768) (7,061) (6,766) (30,455) (27,844)
Depreciation (10,119) (10,119) (9,977) (9,496) (9,791) (42,900) (38,885)
PBT 36,751 30,721 29,633 24,816 26,916 4 24 48 14 131,531 106,900 23
Tax expense (4,574) (3,368) (3,467) (3,714) (3,262) (15,389) (15,346)
PAT 32,177 27,353 26,166 21,103 23,654 5 30 52 16 116,142 91,554 27
Extraordinary items (2,577) (2,577) 844 (3,159) — (8,902)
Share of associates & minority interest (716) (716) (65) (706) (98) (259) (1,457)
Reported PAT 28,884 24,060 26,101 21,240 20,397 (8) 13 36 18 115,883 81,195 43

Reported port volume (mn tonnes) 109 109 109 101 109 — 7.5 7.5 0.2 473 420 13
Reported port revenue 55,360 55,360 55,003 49,110 54,750 0.6 12.7 12.7 1.1 237,084 209,730 13
Reported port EBITDA 39,900 39,900 39,382 35,240 38,325 1.3 13.2 13.2 4.1 171,466 149,245 15
Port EBITDA margin (%) 72.1 72.1 71.6 71.8 70.0 47.40 32 bps 32 bps 207 bps 72.3 71.2

Key ratios (%)

Gross margin 75.3 73.2 74.0 74.0 -80 bps 134 bps -78 bps 73.4
Operating exp./ sales 24.7 26.8 26.0 26.0 80 bps -134 bps 78 bps — 26.6
Employee costs/ sales 6.2 6.7 8.0 6.4 -128 bps -182 bps 39 bps — 7.1
Admin and other exp./ sales 5.0 5.4 5.9 9.0 -45 bps -88 bps -355 bps — 6.9
EBITDA margin 64.1 61.0 61.0 60.1 58.6 2 bps 94 bps 405 bps 238 bps 60.2 59.4 79 bps
PBT margin 48.6 44.2 42.3 39.7 39.0 181 bps 444 bps 889 bps 513 bps 42.0 40.0 202.2
PAT margin 42.6 39.3 37.4 33.8 34.3 193 bps 554 bps 879 bps 502 bps 37.1 34.3 284.8
Effective tax rate 12.4 11.0 11.7 15.0 12.1 -74 bps -400 bps -252 bps -116 bps 11.7 14.4 (265.6)
EPS (Rs) 14.9 12.7 12.1 9.8 11.1 5.0 29.6 52.4 14.7 53.6 42.5 26

Notes:
(A) We have adjusted the 1QFY25 for ennore port stake sale

Source: Company, Kotak Institutional Equities estimates

Mundra & Dhamra has seen significant growth, while Gangavaram was impacted due to non-operation for 36 days in the quarter
Quarterly trajectory of volumes of Adani’s port assets, March fiscal year-ends, 1QFY20-1QFY25 (mn tons)
1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 Yoy (%)
Mundra 37.0 33.0 34.0 35.0 25.8 36.1 42.3 40.2 39.5 36.2 37.1 37.4 42.5 38.5 36.0 38.0 41.5 44.5 47.8 45.9 51.1 23
Dahej 1.6 1.4 2.0 2.0 0.7 1.7 2.2 1.3 1.9 2.2 1.9 2.0 3.2 3.7 2.0 2.0 2.5 3.0 2.8 2.8 2.7 8
Hazira 5.5 5.0 6.0 6.0 3.9 5.6 6.3 6.2 6.3 6.5 6.1 5.9 6.7 6.2 6.0 6.0 6.7 7.3 6.2 6.1 6.8 1
Dhamra port 6.3 7.0 8.0 8.0 6.4 8.3 9.1 8.6 8.5 8.5 8.2 8.3 8.7 8.4 7.0 7.0 9.8 9.9 11.3 11.7 11.9 21
Krishnapatnam — — — — 8.6 9.4 12.4 12.6 10.0 13.0 16.2 13.2 14.2 15.6 15.4 (5)
Gangavaram 6.0 8.0 9.1 8.2 6.0 9.0 9.4 8.7 9.4 9.4 4.7 (50)
Haifa 2.6 2.6 3.1 2.8 2.8 1.6 (38)
Others 6.6 6.1 6.5 7.0 4.7 4.5 16.6 16.9 19.5 14.9 6.1 6.9 8.4 8.9 8.4 8.5 12.7 11.5 14.1 14.6 14.8 17
Total 56.9 52.5 56.5 58.0 41.4 56.2 76.5 73.2 75.7 68.3 74.0 78.0 91.0 86.5 75.4 86.1 101.4 101.2 108.6 108.9 109.0 7.5
YoY(%) 18 1 6 6 (27) 7 35 26 83 21 (3) 7 20 27 2 10 11 17 44 26 7 7.5

Source: Company, Kotak Institutional Equities

Adani Ports and SEZ

Transportation India Research
 3

ADSEZ is commanding ~2X its existing port volume share in the incremental volume growth of India
Share of Adani Ports in Indian Ports yoy incremental volume, March fiscal year-end, 1QFY25 (%)

1QFY25 Incremental volume, in mn ton In %

Commodity India Adani Share of Adani
POL crude 4.0 0.8 20
Fertiliser & FRM (0.1) (0.2) 135
Coal (0.3) 1.2 NA
Container 10.9 6.6 61

Total 16 8.6 53

Source: Ministry of Ports, Company, Kotak Institutional Equities

Top 6 assets of ADSEZ has an expansion potential of ~6X from FY2024 levels, which saw a 70% capacity utilization
Port capacity of ADEZ assets
Asset State Volume Volume share Installed capacity Capacity utilization Max capacity Expansion potential
mn ton, 2024 % mn ton, 2024 % mn ton mn ton
Mundra Gujarat 180 44 264 68 1,080 6.0
Hazira Gujarat 26 6 30 88 85 3.2
Gangavaram Andhra Pradesh 37 9 64 58 250 6.7
Krishnapatnam Andhra Pradesh 59 15 75 79 265 4.5
Dhamra Orissa 43 10 50 86 300 7.0
Kattupalli Tamil Nadu 12 3 25 48 320 26.7
Top 6 Assets 357 88 508 70 2,300 6.4

Source: Company, Kotak Institutional Equities estimates

Container cargo mix improves to higher share as Mundra grows

Evolution of cargo handling composition for Adani Ports, March fiscal year-ends, 2016-1Q25 (%)

Container Liquid Gas

50

41 41 43
41 39 38 39
40 37 37
32

30

20 17 15 15
14 14
12 11 10
8 8
10
1 1 2 2
0.3 0.5
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25

Source: Company, Kotak Institutional Equities

Adani Ports and SEZ

Transportation India Research
 4

~5 mn ton impact owing to non-operations at Gangavaram, which are to improve ahead rest of the year
Port-wise incremental cargo volume of APSEZ, March fiscal year-end, 1QFY25 (MMT)

Source: Company, Kotak Institutional Equities

Container cargo taking lion’s share in incremental volumes, in otherwise weak 4% overall port volume
growth in the country
Commodity-wise incremental cargo volume of APSEZ, March fiscal year-end, 1QFY25 (MMT)

Source: Company, Kotak Institutional Equities

Adani Ports and SEZ

Transportation India Research
 5

Volumes for Mundra and other related ports, March fiscal year-ends, 2014-27E (mn tons)
2014-24 2024-27
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E CAGR (%) CAGR (%)
Mundra port
Bulk 52 46 42 39 45 47 38 29 29 40 42 48 51
Coal 39 34 31 27 34 35 29 18 20 30 33 38 40
Other bulk 13 11 11 12 11 13 9 11 10 9 10 10 11
Crude / POL / Liquid 22 26 28 28 26 22 24 26 26 29 31 33 35
Container ('000 TEUs) 2,913 3,238 3,459 4,117 4,543 4,806 5,710 6,511 6,635 7,323 8,114 8,843 9,542
Container (mn tons) 43 46 53 63 69 73 87 99 101 111 123 134 145
Mundra volumes 117 118 122 130 140 142 149 154 157 180 197 215 231 5 9
Other port assets
Dahej port 12 8 6 7 9 6 6 8 11 11 11 12 12
Hazira port 7 12 16 17 20 22 22 25 25 26 28 31 33
Dhamra port 15 15 21 21 21 30 32 34 34 43 51 58 65
Existing assets 152 153 166 175 189 200 209 221 227 260 287 316 341 6 9
Mormugao port 1 2 2 1 4 5 4 3 1 1 1 1 1
Vizag port 1 1 1 - 1 2 2 2 2 2 3 3 3
Kandla port — 4 4 4 6 6 6 4 8 10 11 13 15
Ennore + Kattupalli port — — 5 8 10 13 11 12 20 22 26 29 32
Krishnapatanm — — — — — — 19 40 48 59 66 76 84
Vizhingam — — — — — — — — - - 3 4 7
Dighi — — — — — — — 1 1 1 2 4 6
Gangavaram — — — — — — — 30 33 37 33 47 54
Haifa Port — — — — — — — — 3— 10 9 13 17
Others — — — — — — — 3— — 14 35 40 45
Total of key ports 154 160 179 188 210 225 250 316 342 417 475 545 604 12 13

Source: Company, Kotak Institutional Equities estimates

We marginally cut our volume estimates by 2% on lower growth in Ennore port and in Haifa port
Estimates for Adani Ports and SEZ, March fiscal year-ends, 2020-27E (Rs bn)
New estimates Previous estimates % revision 2020-27
2020 2021 2022 2023 2024 2025E 2026E 2027E 2025E 2026E 2027E 2025E 2026E 2027E CAGR (%)
Volumes (mn tons)
Mundra volume 142 149 154 157 180 197 215 231 197 215 231 — — — 7
Dahej port 6 6 8 11 11 11 12 12 11 12 12 — — —
Hazira port 22 22 25 25 26 28 31 33 28 31 33 — — —
Mormugao port 5 4 3 1 1 1 1 1 1 1 1 — — —
Vizag port 2 2 2 2 2 3 3 3 3 3 3 — — —
Kandla port 6 6 4 8 10 11 13 15 11 13 15 — — —
Dhamra port 30 32 34 31 43 51 58 65 51 58 65 — — —
Ennore + Kattupalli 13 11 12 20 22 26 29 32 29 34 39 (12) (15) (19)
Krishnapatnam — 19 40 48 59 66 76 84 66 76 84 — — —
Gangavaram 30 33 37 33 47 54 33 47 54 — — —
Haifa Ports 3 12 9 13 17 13 16 19 (35) (21) (11)
Existing assets 225 250 312 339 403 436 497 546 444 505 555 (2) (2) (2) 14
Vizhingam — — — — — 3 4 7 3 4 7 — — —
Dighi 1 1 1 2 4 6 2 4 6 — — —
Other new assets 3 14 35 40 45 37 41 45 (6) (2) 0
Consolidated volumes 225 250 316 342 421 475 545 604 486 554 613 (2) (2) (2) 15

Consolidated financials
Revenues 118,731 125,496 159,340 208,519 267,106 312,847 348,701 388,345 309,504 351,791 391,964 1 (1) (1) 18
EBITDA 75,654 79,835 97,510 128,335 158,639 188,264 218,304 250,958 189,641 222,347 252,521 (1) (2) (1) 19
Recurring PAT 54,693 42,790 57,741 82,389 90,009 115,883 136,603 152,848 113,077 137,166 151,370 2 (0) 1 16
Recurring EPS (Rs) 25 20 27 38 42 54 63 71 52 63 70 2 (0) 1 16

Source: Company, Kotak Institutional Equities estimates

Adani Ports and SEZ

Transportation India Research
 6

We roll forward our FV to Rs1,710

One-year forward SoTP-based valuation of Adani Ports & SEZ
Entity EV (Rs mn) Net debt Implied equity value Stake (%) Equity Value of stake Value/share Method
Mundra Port (excl. SEZ) 710,202 (406,999) 1,117,202 100% 1,117,202 517 FCFF
SEZ 59,190 — 59,190 100% 59,190 27 FCFF
CT3 (incl. CT-3 extension) 256,772 32,917 223,854 50% 111,927 52 FCFF
CT5 124,293 62,510 61,783 100% 61,783 29 FCFF
Dahej 80,329 (13,306) 93,635 74% 69,290 32 FCFF
Dhamra 466,569 (7,468) 474,037 100% 474,037 219 FCFF
Hazira 247,049 (21,194) 268,244 100% 268,244 124 FCFF
Vizhinjam — — 31,480 100% 31,480 15 1X equity
Kandla 22,840 18,444 3,701 100% 3,701 2 1X equity
Murmugao (602) 18,088 1,159 100% 1,159 1 1X equity
Vizag — — 1,013 100% 1,013 0 1X equity
Ennore 28,817 5,759 23,058 51% 11,759 5 FCFF
Kattupalli 53,459 (910) 54,369 97% 52,738 24 FCFF
Krishnapatnam 468,754 565 468,190 100% 468,190 217 FCFF
Dighi 24,577 (4,910) 29,487 100% 29,487 14 FCFF
Gangavaram 386,822 (3,597) 390,419 100% 390,419 181 FCFF
Sarguja Rail 85,655 (8,406) 94,061 100% 94,061 44 14X EV/EBITDA
West container terminal (Sri Lanka) — — 56,849 51% 28,993 13 2X investment value
Adani Logistics 98,953 14,461 84,492 100% 84,492 39 15X EV/EBITDA
Ocean Sparkle — — 42,475 100% 42,475 20 FCFF
Haifa port acquisition — — 96,534 70% 67,574 31 FCFF
Others potential acquisition — — 128,082 100% 128,082 59 FCFF
Adani Harbour (marine revenues) 433,910 (152,155) 586,066 100% 586,066 271 14X EV/EBITDA
Investments not valued explicitly — — 23,129 100% 23,129 11 1X equity
Savings from investment in solar plant — — 56,000 100% 56,000 26 14X EV/EBITDA
Less : standalone debt+L&A — 589,749 (589,749) 100% (589,749) (273)
Total 3,672,740 1,710

Source: Company, Kotak Institutional Equities estimates

Adani Ports and SEZ

Transportation India Research
 7

Consolidated financials of Adani Ports & SEZ, March fiscal year-ends, 2016-27E (Rs mn)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E
Income statement
Net sales 71,087 84,394 113,230 109,254 118,731 125,496 159,340 208,519 267,106 312,847 348,701 388,345
Total operating costs (24,843) (30,247) (42,608) (43,339) (43,077) (45,661) (61,830) (80,185) (108,466) (124,584) (130,397) (137,387)
EBITDA 46,243 54,147 70,621 65,916 75,654 79,835 97,510 128,335 158,639 188,264 218,304 250,958
Other income 7,327 10,401 10,109 13,623 18,614 19,702 21,548 15,535 14,994 16,623 16,719 17,352
Depreciation (10,630) (11,602) (11,884) (13,735) (16,803) (21,074) (27,396) (34,232) (38,885) (42,900) (46,949) (52,235)
Financial charges (11,746) (11,157) (14,954) (13,852) (18,131) (22,553) (25,563) (25,936) (27,844) (30,455) (29,694) (27,684)
Pre-tax profit 31,194 41,789 53,893 51,952 59,333 55,910 66,099 83,701 106,905 131,531 158,380 188,391
Taxation (2,828) (2,866) (15,442) (10,815) (4,597) (12,433) (9,617) (964) (15,346) (15,389) (21,288) (35,243)
Adjusted PAT (before exceptional items) 28,366 38,922 38,451 41,138 54,737 43,477 56,481 82,737 91,559 116,142 137,092 153,148
Extraordinary items — — (1,552) (690) (16,850) 7,152 (10,453) (29,287) (8,902) — — —
Minority interest 413 100 (163) (545) — (544) 1,260 (826) 67 (259) (489) (299)
Share of profit from associates 193 93 — (1) (44) (143) — 478 (1,617) — — —
Reported PAT post-minority interest 28,972 39,115 36,736 39,902 37,842 49,943 47,289 53,102 81,106 115,883 136,603 152,848
Adjusted EPS (Rs) 13.4 18.1 17.7 18.8 25.3 19.8 26.7 38.1 41.7 53.6 63.2 70.8
Balance sheet
Shareholders funds 135,055 175,260 210,688 245,382 256,235 306,283 382,500 455,836 529,448 629,364 748,025 881,199
Share capital 4,142 4,142 4,142 4,142 4,064 4,064 4,225 4,320 4,320 4,320 4,320 4,320
Reserves and surplus 130,913 171,118 206,546 241,240 252,171 302,219 378,275 451,516 525,127 625,044 743,704 876,879
Loan funds 189,535 214,860 214,322 271,879 294,627 351,809 454,531 498,193 462,792 503,952 471,568 458,954
Deferred tax liability (net) (12,015) (17,759) (11,681) (8,124) (9,227) 3,214 12,130 9,865 22,512 22,512 22,512 22,512
Total sources of funds 313,814 373,754 414,824 511,237 543,832 675,991 853,088 977,279 1,030,734 1,175,084 1,261,849 1,382,709
Total fixed assets 236,427 264,023 306,832 338,051 377,954 518,341 607,968 771,788 791,770 874,460 927,056 966,083
Investments 5,452 26,114 10,789 7,793 3,520 22,362 59,611 161,807 152,250 152,250 152,250 152,250
Cash and bank balance 12,782 19,768 29,677 59,673 73,139 47,008 104,921 42,488 76,319 136,628 169,243 249,291
Net current assests excl cash 59,153 63,850 67,527 105,720 89,219 85,878 64,656 (3,002) 9,004 10,355 11,908 13,694
Total application of funds 313,814 373,754 414,824 511,237 543,831 675,991 853,088 977,279 1,030,734 1,175,084 1,261,850 1,382,710
Cash flows
Operating profit before working capital changes 45,312 60,122 73,144 71,042 72,605 80,202 99,751 136,218 162,991 188,264 218,304 250,958
Changes in working capital (14,092) (12,870) (7,071) 317 9,909 4,084 6,735 (8,546) (96) (1,351) (1,553) (1,786)
Cash flow from operations 23,805 40,019 56,081 60,294 74,174 75,558 98,002 119,333 150,176 171,524 195,463 213,928
Capex (21,102) (36,871) (26,978) (28,867) (35,584) (19,497) (35,815) (89,210) (74,163) (125,590) (99,545) (91,261)
Free cash flows 2,703 3,148 29,104 31,427 38,590 56,061 62,187 30,123 76,013 45,934 95,918 122,667

Growth (%)
Revenue growth 15.6 18.7 34.2 (3.5) 8.7 5.7 27.0 30.9 28.1 17.1 11.5 11.4
EBITDA growth 18.5 17.1 30.4 (6.7) 14.8 5.5 22.1 31.6 23.6 18.7 16.0 15.0
Recurring PAT growth 130.7 37.2 (1.2) 7.0 33.1 (20.6) 29.9 46.5 10.7 26.8 18.0 11.7
Key ratios
EBITDA margin (%) 65.1 64.2 62.4 60.3 63.7 63.6 61.2 61.5 59.4 60.2 62.6 64.6
Recurring PAT margin (%) 39.9 46.1 34.0 37.7 46.1 34.6 35.4 39.7 34.3 37.1 39.3 39.4
Effective tax rate (%) 9.1 6.9 28.7 20.8 7.7 22.2 14.5 1.2 14.4 11.7 13.4 18.7
Net debt to equity (X) 1.3 1.1 0.9 0.9 0.9 1.0 0.9 1.0 0.7 0.6 0.4 0.2
Net debt to EBITDA (X) 3.8 3.6 2.6 3.2 2.9 3.8 3.6 3.6 2.4 2.0 1.4 0.8
BVPS (Rs) 65 85 102 118 126 151 181 211 245 291 346 408
RoE (%) 23.9 25.2 19.8 17.8 21.8 15.2 16.8 19.7 18.3 20.0 19.8 18.8
RoCE (%) 12.7 14.3 12.5 11.3 13.5 10.0 10.2 11.8 11.5 13.0 13.4 13.3

Source: Company, Kotak Institutional Equities estimates

Adani Ports and SEZ

Transportation India Research
 DISCLAIMERS, DISCLOSURES & LEGAL
Ratings and other definitions/identifiers
Definitions of ratings

BUY. We expect this stock to deliver more than 15% returns over the next 12 months.

ADD. We expect this stock to deliver 5-15% returns over the next 12 months.
REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.
SELL. We expect this stock to deliver <-5% returns over the next 12 months.

Our Fair Value estimates are also on a 12-month horizon basis.

Our Ratings System does not take into account short-term volatility in stock prices related to movements in the market. Hence, a particular Rating may
not strictly be in accordance with the Rating System at all times.

Distribution of ratings/investment banking relationships

Kotak Institutional Equities Research coverage universe

Percentage of companies covered by Kotak Institutional

70%
Equities, within the specified category.

60%
Percentage of companies within each category for which
50% Kotak Institutional Equities and or its affiliates has
provided investment banking services within the previous
12 months.
40%
34.9% * The above categories are defined as follows: Buy = We
31.6% expect this stock to deliver more than 15% returns over
30% the next 12 months; Add = We expect this stock to deliver
5-15% returns over the next 12 months; Reduce = We
18.8% expect this stock to deliver -5-+5% returns over the next
20%
14.7% 12 months; Sell = We expect this stock to deliver less than
-5% returns over the next 12 months. Our target prices
8.5%
10% are also on a 12-month horizon basis. These ratings are
2.9% 1.8% used illustratively to comply with applicable regulations. As
1.1%
of 31/03/2024 Kotak Institutional Equities Investment
0%
BUY ADD REDUCE SELL Research had investment ratings on 272 equity securities.

Source: Kotak Institutional Equities

As of June 30, 2024

Coverage view
The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following
designations: Attractive, Neutral, Cautious.

Other ratings/identifiers

NR = Not Rated. The investment rating and fair value, if any, have been suspended temporarily. Such suspension is in compliance with applicable
regulation(s) and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or
strategic transaction involving this company and in certain other circumstances.

CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.

NC = Not Covered. Kotak Securities does not cover this company.

RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and fair value, if any, for this stock, because there is not a
sufficient fundamental basis for determining an investment rating or fair value. The previous investment rating and fair value, if any, are no longer in
effect for this stock and should not be relied upon.

NA = Not Available or Not Applicable. The information is not available for display or is not applicable.

NM = Not Meaningful. The information is not meaningful and is therefore excluded.

India Research
Corporate Office Overseas Affiliates

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