Adani Ports share price was up over 2 percent in the morning session on March 16 after the company received a Letter of Intent (LOI) from Sri Lankan government to develop and operate the west container terminal (WCT) of Colombo Port in Sri Lanka, in a consortium.
"Adani Ports will partner with Sri Lanka's largest diversified conglomerate John Keells Holdings and with the Sri Lanka Ports Authority (SLPA) as a part of the consortium awarded this mandate," the company said in a filing to exchanges.
"The WCT will be developed on a build, operate and transfer basis for a period of 35 years as a public-private partnership. Adani Ports will hold 51 percent in the terminal partnership and WCT will be developed to reach a capacity of 3.5 million TEUs. WCT will have a quay length of 1,400 meters and alongside depth of 20 meters, thereby making it a prime trans-shipment cargo destination to handle ultra large container carriers," Adani Ports said.
Also Read: Adani Ports-led consortium gets LoI from Sri Lanka govt to build West Container Terminal at Colombo Port
The stock was trading at Rs Rs 733.00, up Rs 14.00, or 1.95 percent at 09:25 hours. It has touched an intraday high of Rs 735.80 and an intraday low of Rs 725.40.
Earlier this month, the company board approved the issue of equity shares on a preferential basis to Windy Lakeside Investment. The board of directors of Adani Ports and SEZ at its meeting approved the issuance, offer and allotment of up to 1,00,00,000 equity shares of the face value of Rs 2 to Windy Lakeside Investment, on a preferential basis, at a price of Rs 800 per equity share (at a premium of Rs 798 per equity share) aggregating to Rs 800 crore, subject to the approval of regulatory/ statutory authorities and the shareholders of the company, as per the company release.
Global research firm Citi has a buy on the stock with target at Rs 935 per share. The preferential issue at Rs 800 per share cements the valuation, reported CNBC-TV18.
Morgan Stanley has an overweight rating with target at Rs 730 per share. It is of the view that the 0.5 percent equity stake is being bought at a premium to the current price. The transaction must be seen in the context of the Gangavaram Port acquisition from the same PE investor. It highlights this investor's confidence in the company, reported CNBC-TV18.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum: price above short, medium and long term moving averages. It has decreasing promoter pledge with FII / FPI or institutions increasing their shareholding.
Moneycontrol technical rating is very bullish with moving averages and technical indicators being being bullish.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.