Wednesday was a great day for Adani Group investors in the stock market. Adani Ports (APSEZ), one of the major shares of the company, showed a stormy rise and touched its new record level of 52 weeks. In Wednesday's trading session, this share reached Rs 1,860.20 with a jump of 2.76 percent. This stock, which has shown a rise of more than 28 percent in the last one year, has given a bumper return of about 42 percent to the investors in the last three months alone. A big reason behind this strong rise has come to light. In fact, the company has signed a huge deal worth about Rs 13,225 crore with a unit of the world's leading shipping firm MSC. In view of this big deal and strong business expansion, brokerage house is quite bullish on Emkay shares.
Adani Ports has signed an important final agreement with 'TiL', the container terminal wing of MSC, one of the world's largest shipping companies. Under this deal, TiL is now going to buy 49 percent stake in Adani Vizhinjam Port Private Limited (AVPPL). This mega-deal has been finalized for approximately 1.4 billion dollars i.e. Rs 13,225 crore. After this huge foreign investment, the total enterprise value of Vizhinjam Port is estimated at $ 2.85 billion. However, the deal will have to go through the process of necessary regulatory approvals before it can be fully implemented.
This partnership will have a direct impact on the infrastructure and functioning of the port. Adani Group is working on an ambitious plan to increase the container handling capacity of Vizhinjam Port manifold. Currently this capacity is 16 lakh TEU (container measuring unit), which is targeted to be increased to 57 lakh TEU by December 2028. The company management believes that after the capacity expansion, a large transshipment cargo traffic from Bangladesh can come to Vizianagaram Port, which is currently operated through ports in South-East Asia.
Market analysts do not see any operational hurdles in this new project. The main reason for this is that Adani Ports' experience of working with MSC is not new. Both the companies are already successfully working jointly at the country's major Mundra and Ennore ports. Talking about the performance of Vizhinjam Port, it had created a big record by handling 20 lakh TEU containers in the first 18 months of its operations. The special thing is that MSC's cargo has the largest share in this record.
Seeing this big deal and the great outline of the future, leading market analysts are very excited. Brokerage house MK in its valuation has estimated the value of Vizhinjam Port at only 2.85 billion dollars. The brokerage clearly believes that the increasing capacity of the port and foreign partnerships will provide a strong foundation for the company's growth in the long term. Due to this confidence, the brokerage has maintained its 'BUY' rating on the shares of Adani Ports. Also, the target price for March 2027 for investors has been directly increased from Rs 1,900 to Rs 2,000.
