From containers to capital allocation, Adani Ports is doing everything – except giving retail investors a 10x in 10 days. But maybe that’s a good thing.
⚡ At a Glance
Adani Ports & SEZ Ltd clocked 120.6 MMT cargo in Q1 FY26 (+11% YoY), driven by containers (+19% YoY). With a sprawling infra empire and ₹3.1 lakh Cr market cap, it’s India’s most valuable logistics stock. Yet, it trades at just 28x earnings – cheaper than Zomato’s promises.
🏗️ WTF Do They Even Do?
Let’s get this straight:
- Ports & Terminals (82% revenue): Mundra, Hazira, Kattupalli, Krishnapatnam – you name it.
- Logistics (8%): End-to-end cargo solutions. Inland depots, rakes, rail… basically, “You import, we move.”
- SEZ & Real Estate (6%): Mundra SEZ is a mini country of its own.
- O&M (4%): Runs and maintains infra assets – including other people’s chaos.
In short: Adani is playing SimCity but with real cranes and real profits.
📈 Financials Snapshot (FY25)
| Metric | Value (₹ Cr) | YoY Growth |
|---|---|---|
| Revenue | 30,475 | +14% |
| Operating Profit | 18,141 | +16% |
| OPM | 60% | 🔥 |
| Net Profit | 11,061 | +36% |
| EPS | ₹51.35 | Up from ₹37.55 |
| ROE | 19% | Best in class |
| ROCE | 14% | Improving |
💡 OPM of 60% is what SaaS bros in Silicon Valley dream of.
💸 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 28.7x
- Market Cap: ₹3.09 lakh Cr
- Book Value: ₹288 → P/B = 5x
- EV/EBITDA: ~20x
🧠 EduFair Value Range™: ₹1,350 – ₹1,550
Based on FY26E EBITDA ~₹16,000 Cr and EV/EBITDA range of 18–22x. Net debt considered ~₹45,000 Cr. Shares outstanding ~432 Cr.
✅ Not cheap-cheap, but justified for a logistics monopoly with moat, margins, and multi-modal dreams.
📰 What’s Cooking?
- Q1FY26 Volumes:
- Cargo: 120.6 MMT (+11%)
- Container Cargo: +19%
- Rail Logistics: 179,479 TEUs (+15%)
- Inland Waterways (GPWIS): 6.05 MMT (+9%)
- Credit Rating: Reaffirmed CARE AAA / A1+
- AGM Drama? Zero. Just video conferencing and voting.
This is possibly the only Adani company that hasn’t shown up in a Hindenburg footnote recently.
🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 Value (₹ Cr) |
|---|---|
| Net Worth | 62,269 |
| Borrowings | 51,621 |
| Debt/Equity | 0.83 |
| Fixed Assets + CWIP | 1,01,322 |
| Investments | 4,659 |
🧠 Capex on steroids, but earnings are catching up.
💰 Cash Flow – Sab Number Game Hai
| FY25 (₹ Cr) | Value |
|---|---|
| CFO (Operating) | 17,226 |
| CFI (Investing) | -9,788 |
| CFF (Financing) | -6,916 |
| Net Cash Flow | +523 |
Still churning ₹17,000 Cr+ from operations – so no worries even if a few SEZs don’t “zone” properly.
📊 Ratios – Sexy or Stressy?
| Metric | Value FY25 |
|---|---|
| ROE | 19% |
| ROCE | 14% |
| OPM | 60% |
| Dividend Yield | 0.48% |
| Interest Coverage | ~6.2x |
Verdict: Sexy enough to swipe right.
💸 P&L Breakdown (5-Year Trend)
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|
| FY21 | 12,550 | 5,049 | 24.58 | 69% |
| FY22 | 17,119 | 4,953 | 23.13 | 56% |
| FY23 | 20,852 | 5,391 | 24.58 | 52% |
| FY24 | 26,711 | 8,104 | 37.55 | 58% |
| FY25 | 30,475 | 11,061 | 51.35 | 60% |
🔁 Profit CAGR (5Y): 23%
🔁 Revenue CAGR (5Y): 21%
🥊 Peer Comparison
| Company | Mkt Cap (₹ Cr) | ROE (%) | OPM (%) | P/E |
|---|---|---|---|---|
| Adani Ports | 3,09,245 | 18.7 | 59.5 | 28.7 |
| JSW Infra | 64,628 | 16.2 | 50.5 | 44.9 |
| Guj Pipavav Port | 7,638 | 19.0 | 58.5 | 19.1 |
📌 Adani = Scale + Margins + Reasonable valuation
📌 JSW Infra = High-growth bet
📌 Pipavav = Dividend uncle
🧬 Shareholding Mix (Mar 2025)
| Holder | % Holding |
|---|---|
| Promoters | 65.89% |
| FIIs | 13.43% |
| DIIs | 14.73% |
| Public | 5.94% |
Total shareholders: 12.6 lakh
Even LIC uncles and Gen Z traders can agree on this one.
🧠 EduInvesting Verdict™
Adani Ports is not the most exciting stock. But it’s consistent, cash-rich, and compounding like a boss. Logistics is India’s next infra boom, and this stock is already laying the rails (literally).
Is it undervalued? Not really.
But is it overpriced? Also no.
⚖️ Verdict:
If Warren Buffett was desi and wore a mundu, this is the kind of infra stock he’d buy.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: Adani Ports, Infra Stocks, Q1FY26 Results, Container Growth, Logistics, SEZ, India Infra, EduInvesting
