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Why did Adani Ports shares surge 5% as Iran-Israel announced ceasefire?

Adani Ports share price gained on the NSE today, rising nearly 5 per cent in the intraday trade. The stock of the Adani Group company rose 4.7 per cent to hit a high of ₹1,418.7 per share on the stock exchange. On the BSE, the stock hit a high of ₹1,418.85 per share. At 11:05 AM, Adani Ports shares were trading 3.8 per cent higher on the National Stock Exchange as against a 1 per cent rise in the benchmark Nifty50 index. Why are Adani Ports shares rising today? Adani Ports shares were rising in trade today after Iran and Israel announced a ceasefire to end their '12-day war'. Adani Ports jointly owns a 70 per cent stake in Haifa Ports in Israel. In 2023, Adani Ports and Israel's Gadot Group acquired a 70-per cent stake in Haifa Ports for $1.18 billion. Haifa Port is one of the major seaports in Israel. According to reports, Israel's largest oil refinery, Bazan, had suspended all operations at the Haifa Port last week, following Iranian missile strikes. Meanwhile, in a Social Truth post, US President Donald Trump claimed early this morning that Iran and Israel have reached a "complete and total ceasefire". This came hours after Iran fired limited missiles towards the US military base in Qatar. In another post, at around 10:30 AM IST, Trump said that the ceasefire announced by him was in effect. Nonetheless, reports suggested Iran launched a barrage of missiles at Israel, this morning, soon after Trump claimed about broking a ceasefire agreement between the two countries. Adani Ports share price target Adani Ports shares have zoomed over 15 per cent so far in calendar year 2025 as against 4 per cent rise in the benchmark indices. The stock hit a 52-week high of ₹1,604.95 on the NSE on August 1, 2024, and a 52-week low of ₹995.65 on November 21, 2024. According to analysts at BOB Capital, the logistics sector had a market size ₹21.6 trillion in FY24, growing at an 11 per cent CAGR. However, the market remains highly fragmented — both across service offerings (rail, road, warehousing) and within each segment, where numerous players operate. Adani Ports, according to the brokerage, has added various logistics services to its portfolio, with its strategy anchored on specific criteria such as a strong B2B presence, port adjacency, and leveraging opportunities in rail and trucking. "The ₹15,000–20,000 crore capex will build logistics assets like rakes, MMLPs, and warehouses, targeting ₹11,000 crore in incremental revenue. Asset turns improve gradually as initial utilization is low, given fragmented networks and empty return loads. As demand decentralizes and logistics penetration deepens, cargo flows diversify, driving utilization and revenue growth," it said. The management aims to accelerate this ramp-up through a focused push-pull strategy across assets, which will result in revenue/Ebitda CAGR of 48 per cent/53 per cent over FY25-29E. "The management remains focused on improving ROCE in the medium term, with accretive potential over the long term, despite the sector's high gestation nature. ADSEZ is well-positioned to drive consolidation in segments like trucking, which remain fragmented and inefficient. We conservatively build in a 22 per cent revenue CAGR in logistics over FY25–27E, factoring DFC implementation timelines (8–12 months away)," BOB Capital said. Reflecting the strengthening logistics ecosystem and visible growth path, the brokerage has revised its one-year forward EV/Ebitda multiple to 16x (from 14x) and arrived at a revised Mar-26 share price target of ₹1,720 (vs ₹1,490 earlier).