Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) surged by 2.13 percent to reach ₹1,937.40 in Friday's trading, placing them near their all-time peak of ₹1,949.05. This upward momentum follows the Adani Group firm's recent announcement of acquiring Netherlands-based liquid storage operator Evos BV for an enterprise value of 2.56 billion euros ($2.88 billion).
The acquisition, expected to finalize within 15 months, positions Adani Ports to significantly expand and diversify its liquids portfolio. Evos BV is recognized as Europe's second-largest independent liquid storage operator, bringing eight new European terminals to Adani Ports' global footprint, extending its presence from 20 to 28 ports and terminals across five to ten countries.
Strategic Expansion and Future Fuels
Adani Ports highlighted that the Evos deal is a strategic move to gain exposure to the long-term shift towards new-age fuels, including sustainable aviation fuel and biofuels. This aligns with a broader industry trend towards greener energy solutions and positions APSEZ in a growing market segment.
Brokerage firms have largely reacted positively to the acquisition. JM Financial noted that the deal's valuation is largely in line with that of listed European liquid storage major Royal Vopak. While initial synergies with Indian operations might be limited, the acquisition is expected to provide annuity-type storage EBITDA through take-or-pay contracts with CPI-linked escalations, ensuring strong cash flow visibility.
"We view the acquisition as a largely neutral development initially, but in case Adani Ports is able to demonstrate strong EBITDA accretion from value-added services, it can be a key turnaround driver," stated JM Financial, upgrading ADSEZ to a 'BUY' rating with a target price of ₹2,065.
Brokerage Outlook and Price Targets
Motilal Oswal Financial Services Ltd (MOFSL) projects a 14 percent growth in Adani Ports' cargo volumes over FY26-28. This growth is anticipated to fuel a compound annual growth rate (CAGR) of 17 percent in revenue, 18 percent in EBITDA, and 21 percent in profit after tax (PAT) during the same period. MOFSL reiterated its 'BUY' rating on the stock, setting a target price of ₹2,170.
Elara Capital also maintained its 'Buy' rating and estimates for Adani Ports, raising its price target to ₹2,432 from ₹2,107. The brokerage emphasized that the transaction adds a scaled European liquid-storage platform to APSEZ's portfolio, effectively diversifying its earnings base and enhancing its global reach.