The share price of Adani Ports and Special Economic Zone jumped as much as 8 percent on February 8 after Goldman Sachs kept the ‘buy’ rating on the stock with a target price of Rs 840, implying an upside potential of 41 percent from today’s high of Rs 597.
At 10:27 am, shares of the port company were trading at Rs 584, up 5.6 percent on the BSE.
The foreign brokerage firm said that the results were in line with its estimates and pointed out that it liked the company’s focus on deleveraging in the near term.
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For the December quarter, Adani Ports reported a 16.04 percent fall in consolidated net profit for the quarter ended December 2022 at Rs 1315.54 crore, as against Rs 1567.01 crore a year back. Revenue from operations for the reporting quarter came in at Rs 4786.17 crore, up 17.53 percent from Rs 4071.98 crore in the corresponding quarter a year ago.
Amid the Adani fiasco after the Hindenburg attack, Adani Group stocks had shed quite a bit. Shares of Adani Power, Adani Transmission, Adani Wilmar, and Adani Enterprises were trading in the range of 3-8 percent. Whereas Adani Green Energy had risen around three percent on strong quarterly results but failed to hold on to the gains and fell over two percent.
Meanwhile, Adani Wilmar was locked in its upper circuit.
Recently, the news of its promoters releasing some of their pledged stake in the company also helped better investor sentiment for the stock. With prepayment of $1.114 billion of share-backed facility ahead of maturity of September 2024, about 168 million shares (12 percent stake) of the promoters’ holding in Adani Ports will now be released.