Bernstein has increased its price targets for Adani Ports and related companies, citing improved port performance, capacity expansions, and revised financial assumptions, as analysts reassess the conglomerate’s growth prospects.
Bernstein has lifted its target price on Adani Ports and Special Economic Zone to Rs 1,973 a share as it revised assumptions across several Adani Group companies, citing stronger port volumes, fresh capacity plans and updated tariff and financing estimates. The move comes as brokers continue to reassess the group’s earnings outlook after a series of operational updates and management targets across its infrastructure and energy businesses.
For Adani Ports, Bernstein raised its FY27 volume growth forecast to 12% from 10% after pointing to solid international port performance in the first quarter of FY27 and July data. That stronger outlook fed into a 3% increase in its FY27 earnings per share estimate. The brokerage also nudged up the valuation multiple it applied to the stock, to 16.5 times enterprise value to EBITDA from 16 times, and said the new price target was based on FY28 EBITDA estimates.
Bernstein was similarly constructive on Adani Power, setting a target of Rs 220 and using a discounted cash flow model to build its valuation. It assumes a 24 gigawatt pipeline will be added by FY33, with financials modelled asset by asset over an assumed 40-year life. Beyond FY33, it expects annual capacity additions of 1.5GW a year through FY60, using a weighted average cost of capital of 10%.
On Adani Green Energy, Bernstein cut its FY27 EBITDA estimate by 10% and set a target price of Rs 980 after updating its model for lower contracted tariffs, a changed debt-equity mix and a longer build-out schedule through 2030. The brokerage said it now factors in management’s goal of reaching 50GWh of battery energy storage system capacity and 5GW of pumped storage capacity by 2030. It also reduced its weighted average cost of capital to 8.6% from 8.8% on the basis of the current share price. Separately, ICICI Securities has maintained a buy rating on Adani Ports with a higher target of Rs 2,050, while Adani Green’s management has previously said its longer-term ambition is to reach 50GW of renewable capacity by 2030.
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