Buy Adani Ports; target of Rs 180: Prabhudas Lilladher

Prabhudas Lilladher's report on Adani Ports and Special Economic Zone

"Adani Ports and Special Economic Zone's consolidated Q2FY14 earnings appeared weak on a QoQ basis due to the absence of SEZ income which was to the extent of Rs5.2bn in Q1FY14 on account of the income booked for the transfer of the CT 3 terminal as well as regular SEZ income. The SEZ income as against this was only to the extent of Rs130m in the current quarter."

"Revenues for the quarter stood at Rs.11.5bn, 9 percent YoY increase (FY13 includes Abbot Point numbers) and a 22 percent QoQ decline. Absolute port revenues increased by 19 percent on a QoQ basis. EBITDA margins stood at 63.4 percent v/s 62.1 percent in Q1FY14 and 63.6 percent in Q2FY13. PAT for the quarter stood at Rs3.4bn, 23 percent growth of 23 percent YoY and 18 percent QoQ decline."

Valuations: "Our SOTP, post Abbot Point, stands at Rs 180, with Mundra's standalone contributing Rs152, SEZ contributing Rs14 and its other investments contributing to the remaining Rs14. We maintain 'BUY' on the stock," says Prabhudas Lilladher research report.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

Read More