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Last Updated : May 06, 2020 09:40 AM IST | Source: Moneycontrol.com

Adani Ports share price rises 3% post weak Q4 result; Morgan Stanley remains overweight

According to research house, the soft realisations and higher opex in Q4 have driven the miss.

 
 
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Adani Ports share price rose 3 percent in early trade on May 6 despite the company reporting a weak set of numbers for the quarter ended March 2020 (Q4FY20).

The company's Q4 net profit fell 74 percent at Rs 334 crore versus Rs 1,285 crore, while revenue fell 5 percent at Rs 2,921 crore versus Rs 3,082 crore, YoY, reported CNBC-TV18.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was down 15 percent at Rs 1,644 crore against Rs 1,932 crore. The EBITDA margin was down 700 bps at 56 percent versus 63 percent, YoY.

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The company has reported a forex loss at Rs 1,004 crore versus a gain of Rs 109.1 crore, YoY.

Morgan Stanley has remained overweight on the stock with a target at Rs 274 per share.

According to the research house, the soft realisations and higher operational expenditure in Q4 have driven the miss.

Also, the acquisition closures have been pushed back by two quarters. However, there is no explicit guidance, but recovery likely from Q2, it added.

Dolat Capital maintained accumulate rating on the stock.

Expecting slow pick up in cargo volume in Q2FY21, and a V-shape recovery possible in H2 F21 post complete lifting of lockdown, it added.

Availability of manpower to be a challenge and this will impact productivity in the short term. Rail traffic from ports moving efficiently, enabling the company to convert road to rail traffic, it added further.

At 09:24 hrs, Adani Ports and Special Economic Zone was quoting at Rs 269.05, up Rs 5.90, or 2.24 percent on the BSE.
First Published on May 6, 2020 09:40 am
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