Research firm Citi has given a 'buy' rating for Adani Ports & Special Economic Zone (APSEZ) on the back of its strong volume growth in the fourth quarter of FY21. The brokerage firm has set a price target of Rs 935 for the stock.

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The brokerage note further added that the company remains among its top picks and its valuation is still in line with the historical average.

On Wednesday, APSEZ’s share price hit a fresh 52-week high of Rs 885 after gaining over 5 percent. However, the stock soon lost all gains made to trade lower by 2.43 percent at Rs 817.10 apiece on the BSE.

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The positive momentum in APSEZ stock price comes on the back of various strategic announcements by the company. The company reported a sharp jump in its cargo volume for the fourth quarter of FY21. In its business update, APSEZ said it handled cargo volume of 73 MMT in the fourth quarter of FY21, registering a growth of 27 percent year-on-year (YoY).

In March, the company handled cargo volume of 26 MMT, a growth of 41 percent, YoY, and 23 percent, month-on-month. In the entire FY2020-21, APSEZ handled cargo volume of 247 MMT, up 11 percent, YoY.

Last month, the company announced the acquisition of a majority stake in Gangavaram Port, which analysts believe will be positive for the company.

(Edited by : Jomy)