Adani Ports and Special Economic Zone Limited (NSE:ADANIPORTS) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders of Adani Ports and Special Economic Zone Limited (NSE:ADANIPORTS) will be pleased this week, given that the stock price is up 10% to ₹1,261 following its latest third-quarter results. Adani Ports and Special Economic Zone reported in line with analyst predictions, delivering revenues of ₹69b and statutory earnings per share of ₹10.22, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Adani Ports and Special Economic Zone

After the latest results, the 17 analysts covering Adani Ports and Special Economic Zone are now predicting revenues of ₹297.4b in 2025. If met, this would reflect a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 34% to ₹47.56. Before this earnings report, the analysts had been forecasting revenues of ₹292.5b and earnings per share (EPS) of ₹46.43 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 20% to ₹1,329, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Adani Ports and Special Economic Zone, with the most bullish analyst valuing it at ₹1,500 and the most bearish at ₹930 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Adani Ports and Special Economic Zone's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Adani Ports and Special Economic Zone's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Adani Ports and Special Economic Zone's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Adani Ports and Special Economic Zone. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Adani Ports and Special Economic Zone going out to 2026, and you can see them free on our platform here..

Even so, be aware that Adani Ports and Special Economic Zone is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.