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What should investors do with Adani Ports after June quarter results: buy, sell or hold?

Adani Ports and Special Economic Zone reported a 77.04 percent rise in consolidated net profit at Rs 1,341.69 crore for the first quarter of the current fiscal. Its total income rose to Rs 4,938.43 crore in the latest June quarter as against Rs 2,749.46 crore in the year-ago period.

August 04, 2021 / 10:04 AM IST
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Adani Ports share price opened in the green on August 4, a day after the country's largest integrated logistics player reported a 77.04 percent rise in consolidated net profit at Rs 1,341.69 crore for the first quarter of the current fiscal.

Adani Ports and Special Economic Zone Limited  had clocked a consolidated net profit of Rs 757.83 crore in the corresponding period of the previous fiscal, according to a regulatory filing.

The company’s total income rose to Rs 4,938.43 crore in the latest June quarter from Rs 2,749.46 crore in the year-ago period.

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The company's total expenses during the quarter under review increased to Rs 3,464.88 crore from Rs 1,805.24 crore in the same period a year ago.

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The stock was trading at Rs 715.50, up Rs 10.30, or 1.46 percent. It has touched an intraday high of Rs 719.00 and an intraday low of Rs 714.

Here is what brokerages have to say about the stock and the company after Q1 earnings:

Goldman Sachs | Rating: Buy | Target: Rs 790

The Q1 operationally is in line after adjusting for one-time SEZ revenue and MTM FX loss. The company raised volume guidance but it there was only a slight increase in revenue guidance. Diversification of cargo stream, LPG & LNG terminal additions and new ports will be key growth drivers.

CLSA | Rating: Upgrade to outperform | Target: Rs 816

Traffic picked up from a low base in Q1. Share gains continued in Q1—310 bps in overall cargo and 163 bps for containers. Port EBITDA margin rose 100 bps to 71 percent on price hikes and cost-cutting. Earnings supported by lumpy port development income that added 6 percent to EBITDA.

Citi | Rating: Buy | Target: Rs 1,000

The company raised FY22 underlying volume growth guidance by 10 mmt, which we think is conservative. The market share in the port business can take another leg-up via Gopalpur and Karaikal acquisitions. Dominance in the port sector continues to increase and it remains our top pick.

Nomura | Rating: Buy | Target raised to Rs 915

Strong results and management’s clarification on key issues are the key highlights. Increase FY22/23 EBITDA estimates by 5%/1%. Management highlighted potential for further acquisitions like Karaikal and Gopalpur ports. Management highlighted potential acquisitions of CONCOR.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Aug 4, 2021 10:04 am

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