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Largest private port operator in India

APSEZ is the largest port developer and operator in India by volume, with an annual capacity of ~633MMT in India. It commenced operations with the Mundra Port in Gujarat under a 30-year concession agreement with the Gujarat Maritime Board (GMB). Since then, the port company has rapidly grown to become the largest in the country in terms of cargo handling capacity, with 15 operational ports/terminals. The ports offer handling services for all kinds of cargo, viz., dry bulk, liquid bulk, crude, and containers. Further, through Adani Logistics (ALL), the company is present in the logistics business, offering container trains, inland container depots (ICDs), warehousing, etc., which it has been expanding to become an integrated transport utility company.

Strong volume growth:

APSEZ ended FY24 with 24% volume growth in FY24 volumes, taking the total volumes to 420 MMT (YTDFY25 volumes registered growth of 7% YoY at 372MMT). About 27% of the all-India cargo volume was routed through APSEZ ports in FY24 and 9MFY25. For FY25, the company is targeting cargo volumes of 460-470 MMT.

* Market share gains driven by operational efficiencies:

APSEZ achieved 3x higher growth than the industry, growing its market share to ~27% as of Dec’24 from 10% in FY13. This growth was driven by the incorporation of new cargo classes at Mundra and Dhamra ports and a pickup in coal & coastal coal cargo at Gangavaram and Dhamra (aided by robust economic growth). Additionally, the advantages of an integrated port-cum-logistics service have significantly helped gain market share.

* Transforming into an integrated logistics solutions company:

ALL has expanded its services to cover container train operations, container handling in logistic parks, and warehouses offering storage and trucking solutions. With 12 multi-modal logistics parks, 132 trains, 3.1m sq. ft. of warehousing space, and 1.2mmt of grain silos, ALL aims to establish a nationwide presence by further developing logistic parks and warehouses.

* India’s largest third-party marine service provider with the most extensive capital dredging capacity:

APSEZ is the largest marine service provider in the country and has recently acquired an 80% stake in Astro for USD185m. Founded in 2009, Astro is a leading global offshore support vessel (OSV) operator with a fleet of 26 vessels, providing services across the Middle East, India, Far East Asia, and Africa. 

* Volume growth trajectory to continue; reiterate BUY:

APSEZ continues to gain market share while generating strong cash flows and maintaining its leverage position, with a net debt-to-EBITDA ratio of 2x as of Sep’24. We expect APSEZ to register 10% volume growth and a CAGR of 14%/15%/19% in revenue/EBITDA/PAT over FY24-27. With consistent outperformance in cargo volumes, we reiterate our BUY rating with a TP of INR1,400 (based on 15x Sep’26 EV/EBITDA).

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