Adani Ports and Special Economic Zone (APSEZ) has made a strategic move to expand its logistics business through a recent acquisition. The company's step-down subsidiary, Mandhata Build Estate Limited, has acquired a 100% stake in Dependencia Logistics Private Limited for ₹37.77 crore. This development comes alongside the release of APSEZ's impressive quarterly results, showcasing the company's continued growth and expansion strategy.

Acquisition Details

According to a regulatory filing, Mandhata Build Estate Limited completed the acquisition of Dependencia Logistics through a Share Purchase Agreement. Key points of the acquisition include:

• Acquired Entity: Dependencia Logistics Private Limited
• Acquisition Cost: ₹37.77 crore
• Payment Method: Cash consideration
• Stake Acquired: 100% equity stake

Dependencia Logistics, incorporated in Mumbai in February 2022, focuses on transportation and logistics services. However, the company has not yet commenced operations. It has an authorized and paid-up equity share capital of ₹10 lakh and no recorded turnover to date.

Strategic Implications

The acquisition aligns with Adani Ports' strategy to expand its logistics business. By integrating Dependencia Logistics, APSEZ aims to strengthen its position in the transportation and logistics sector, potentially opening up new avenues for growth and service offerings.

Quarterly Financial Performance

Alongside this acquisition news, Adani Ports reported strong financial results for the quarter:

The company demonstrated robust growth in key financial metrics, with a notable 21% year-on-year increase in revenue. However, the EBITDA margin saw a slight contraction compared to the previous year's quarter.

Market Response

The market responded positively to these developments, with Adani Ports shares closing at ₹1,388.90, up 0.59% on the day of the announcement.

This acquisition and the strong financial performance underscore Adani Ports and Special Economic Zone's commitment to expanding its logistics capabilities while maintaining solid financial growth. As the company integrates Dependencia Logistics into its operations, stakeholders will be watching closely to see how this strategic move contributes to APSEZ's long-term growth and market position in the logistics sector.

Jefferies, a global investment banking firm, has reported heightened investor interest in two major players in the Indian port and infrastructure sector: Adani Ports and Special Economic Zone (ADSEZ) and JSW Infrastructure (JSWI). The report, based on recent investor feedback, highlights the strengths and concerns surrounding both companies.

Adani Ports: Diverse Assets and Expansion Plans

Investors have shown appreciation for Adani Ports' diverse asset base and its ambitious logistics expansion plans. The company's stock is currently trading at 14x Sep'26E EV/EBITDA, reflecting market confidence in its growth potential.

Key highlights for Adani Ports include:

• Management guidance of 12-14% year-over-year volume growth
• New ports expected to be commissioned in the second half of FY25
• Positive performance in domestic ports' EBITDA margins over the past two quarters
• Potential for dividends or share buybacks as leverage reduces

Adani Ports' financial outlook appears promising, with leverage expected to decrease from 2.3x in FY25 to a projected 1.1x Net Debt/EBITDA ratio by FY29.

JSW Infrastructure: Capacity Expansion and Valuation Concerns

Investors have welcomed JSW Infrastructure's clear visibility on capacity expansion plans. The company aims to increase its capacity from the current 177 million tonnes to 355 million tonnes.

However, valuation concerns persist for JSWI:

• JSWI currently trades at an 86% premium to ADSEZ's 1-year forward rolling EV/EBITDA
• This premium is significantly higher than the 63% average observed since JSWI's listing

Investor Sentiment and Market Dynamics

The Jefferies report underscores the growing interest in India's port and infrastructure sector. Both Adani Ports and JSW Infrastructure are attracting attention for their growth strategies and market positioning.

Adani Ports

• Diverse asset base and expansion into logistics services are key drivers of investor interest
• Improving financial metrics and potential for shareholder returns add to its appeal

JSW Infrastructure

• Garnering interest for ambitious capacity expansion plans
• Faces scrutiny over its valuation, with a significant premium compared to Adani Ports

As the Indian infrastructure sector evolves, both companies are likely to remain under close watch by investors and analysts. The contrasting strategies of established diversity (ADSEZ) versus rapid expansion (JSWI) offer insights into the different approaches in India's competitive port and infrastructure landscape.