Macquarie Gives ‘Outperform’ Rating To Adani Ports

Ahmedabad: Adani Ports and Special Economic Zone Ltd (APSEZ) is well positioned to capitalise on India’s long-term growth potential due to its businesses’ thematic alignment with the nation’s development, a Macquarie Equity Research report has said, giving the country’s leading ports operator an ‘outperform’ rating.

Macquarie said that the Adani Group company offers a diversified port and cargo mix support resilience and the increasingly integrated nature of logistics offerings should aid further customer lock-in.

The visibility of healthy recurring operating cash flows remains high, supported by mix and customer partnerships. Initiate at Outperform,” Macquarie said in its note.“We are optimistic on APSEZ’ long-term growth prospects supported by its diversification efforts, execution track record, and expansion plans in turn supported by high operating cash flow (OCF) generation. Valuations look reasonable,” according to the global financial institution. Adani Ports is India’s largest port operator and aims to grow at twice the rate of the country’s cargo volume.Macquarie believes the diversity of cargo handled, the locations of its ports, hinterland connectivity, customer partnerships, and its early-mover advantage are favourable factors.