Moneycontrol
Nov 14, 2017 11:39 AM IST | Source: Moneycontrol.com

Adani Ports down 1% on dismal Q2 numbers; CLSA keep buy rating with target Rs 458

The company's Q2 consolidated net profit was down 7.9 percent at Rs 992.4 crore against Rs 1,077.3 crore in a year ago period.

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Shares of Adani Ports and Special Economic Zone fell 1.7 percent intraday Tuesday on subdued numbers declared by the company for the quarter ended September 2017.

The company's Q2 consolidated net profit was down 7.9 percent at Rs 992.4 crore against Rs 1,077.3 crore in a year ago period.

Revenue was up 24.6 percent at Rs 2,706.1 crore against Rs 2,172.6 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) rose 15.8 percent at Rs 1,785 crore and EBITDA margin was down 500 bps at 65.9 percent.

Check out what brokerages saying about the stock:

Kotak Securities | Rating: Add | Target: Raised to Rs 435

According to the firm the recent long-term contracts and resumption of full port operations bode well for a better H2. It has retain its EBITDA estimate as 4 percent.

The higher port development income and lower international expense drive 7-12% higher EPS estimates, it added.

CLSA | Rating: Buy | Target: Rs 458

The firm believes that the traffic disruptions and GST lead the slowdown and expecting pick-up from Q3. As the ports showed slowdown in Q1, the management remains confident of pick up in Q3.

Morgan Stanley | Rating: Overweight | Target: Rs 471

The company has an enviable track record and a strategy of winning market share. The lacklustre H1 volume to be offset by prospects of trade recovery and strong pricing power, said Morgan Stanley.

Deutsche Bank | Rating: Hold | Target: Rs 350

According to brokerage house the Q2 cargo volume disappoints, though outlook remains strong. It expects revenue/EBITDA to grow at CAGR of 13 percent over FY17-20.

Target price hiked on faster ramp-up in container volume, particularly at newer ports, it added.

At 11:30 hrs Adani Ports and Special Economic Zone was quoting at Rs 409.35, down Rs 4.70, or 1.14 percent on the BSE.

Posted by Rakesh Patil
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