Shares of Adani Ports and Special Economic Zone (APSEZ) saw their sharpest drop in two weeks during early trade on April 21, sliding nearly 4% to hit their lowest level since April 7. The dip follows the company’s announcement of a $2.54 billion all-share deal to acquire Abbot Point Port—a strategic deep-water coal export terminal in North Queensland, Australia.
At 10:25 AM, shares of Adani Ports were trading at ₹1,225 apiece, down 2.72% on the NSE. The acquisition, involving the issuance of 143.8 million shares to Carmichael Rail and Port Singapore Holdings, aims to enhance APSEZ’s global presence, but concerns over EPS dilution have weighed heavily on market sentiment.
According to Nuvama Wealth Management, while the acquisition boosts global capacity, the non-cash, share-based structure could temporarily dent per-share earnings, creating short-term pressure on stock performance.
Interestingly, Adani Ports had originally acquired the same terminal in 2011 for $2 billion, before selling it to the Adani family in 2013 to focus on Indian operations. With the latest move, the conglomerate signals a renewed push towards global maritime dominance, driven by anticipated increases in Indian trade and future prospects in green hydrogen exports.
Despite the market’s initial reaction, brokerage Motilal Oswal has maintained its bullish outlook on the stock, reiterating a ‘Buy’ rating with a target price of ₹1,560. The firm expects cargo volume to grow at 10% CAGR during FY24–27, translating into 14% / 16% / 21% CAGR in Revenue / EBITDA / PAT respectively.