Why is the brokerage bullish on this Adani Group stock?

“Adani Logistics has a limited presence in the warehousing space as of now through its existing MMLPs. The company aims to increase its standalone Grade-A warehousing space to 60 million sq ft by FY26 from 0.4 million sq ft currently. It targets 30 million sq ft over the next three years, of which ~50% will be organic and the rest will be through acquisitions,” the brokerage said.

Centrum further added that the Adani Group with its presence in airports, seaports, highways, rail logistics etc. has a deep understanding of the transportation business, and is well positioned to take advantage of emerging opportunities such as Grade-A warehousing.

“APSEZ is comfortably placed to meet its growth ambitions. There may be some interim downward pressure on returns due to rapid scale up plans in logistics/warehousing, but the impact can be mitigated by capex rationalization, increased capacity utilization and better pricing/ profitability, the brokerage note said. Is.

Another brokerage firm ICICI Securities has placed a ‘Buy’ on Adani Ports with a target price of Rs. ₹875 per share and a stop loss of ₹678 with a time frame of three months.

“Open interest in Adani Ports has declined significantly amid the resilience shown by the stock. The stock had made a high of ₹900 in June 2021. In fact, profit-booking has been witnessed repeatedly over the past few months. ₹750-760. However, since October 2021, there has been a steady decline in shorts, indicating closure of short positions. We believe fresh longs may be added to the stock if it sustains above ₹760 level for fresh upside,” said ICICI Securities note.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.