Adani Ports and Special Economic Zone Limited

“APSEZ owns India's irreplaceable port network — a structural compounder with a 15-20 year runway in one of the world's fastest-growing trade corridors. The business earns strong and improving margins, generates real operating cash flow, and benefits from a wide moat that is genuinely widening. However, a full valuation of ~19x EV/EBITDA provides no margin of safety against a promoter governance record that has materially deteriorated: a May 2026 US bribery settlement, active SEBI investigations, pervasive RPTs, and an undersized auditor together constitute a structural risk of minority capital erosion that never fully disappears under Adani family control. The expected 5-year return of ~13-15% CAGR is adequate but not compelling for the governance risk carried. Track for entry at ₹1,400-1,500 where the risk/reward becomes genuinely attractive.”