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Adani Ports and Special Economic Zone (SEZ) shares gave up initial gains amid volatile trade on Friday, a day after the Adani group company's unit, HDC Bulk Terminal, signed a concession agreement with Syama Prasad Mookerjee Port in Kolkata for the mechanisation of Berth 2 at Haldia Port.

Adani Ports shares dropped by as much as Rs 14.5 or 1.5 percent to Rs 954.2 apiece on BSE, in a U-turn after rising to as high as Rs 976.3 apiece earlier in the day.

The stock nearly gave up the entire gain of the previous day, boosted by the management's upbeat commentary and a raise in the target price by Jefferies.

Adani Ports had emerged a successful bidder for the project in February.

"The mechanisation and upgradation of Haldia Bulk Terminal provides us the opportunity to firmly establish APSEZ’s footprint in Bengal... We remain committed to further accelerating the ever-growing industry and economy of Bengal," said Karan Adani, CEO and Whole Time Director of Adani Ports.

The special purpose vehicle formed to implement the project will get the rights to design, build, finance, operate, maintain and manage the bulk terminal with a capacity of 3.74 million tonnes per annum for a concession period of 30 years at Haldia Dock Complex in Haldia, according to a regulatory filing.

Adani Ports shares have rewarded investors with a return of almost 17 percent in the past one month, amid a surge across the group, a period in which the Nifty50 benchmark has declined 0.7 percent.

Jefferies this week raised its target price for the Adani Ports and SEZ stock by 29.4 percent to Rs 1,100, raising its earnings estimates for the Adani group company by 3-7 percent for the current financial year to the year ending March 2025.

Positive on the company's plan to leverage its strong balance sheet to benefit from a gradual recovery in volumes, the brokerage believes the company's double-digit growth should continue in the medium term.

Citi also has a 'buy' rating on Adani Ports with a target price of Rs 1,105. The brokerage is positive on the company's increasing supremacy within the industry through both organic and inorganic routes.

Citi believes the company is likely to continue its strong operating performance, which will drive a rerating for the stock.

Meanwhile, Adani Enterprises — the Adani group flagship — will replace Shree Cement in the Nifty50 from September 30. This will make Adani Enterprises the second Adani stock to be included in the benchmark index.

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