Buy Adani ports; target of Rs 345: Indira Securities

Indira Securities research report on Adani ports

Mundra Port and Special Economic Zone (MPSEZ), India's largest private port and special economic zone, was incorporated as Gujarat Adani Port (GAPL) in 1998 to develop a private port at Mundra, on the west coast of India. The company commenced commercial operations in October  2001. Mundra Special Economic Zone (MSEZ) was incorporated in November 2003, to set up an SEZ at Mundra. MSEZ was merged with GAPL in April 2006. The company was renamed as Mundra Port and Special Economic, to reflect the nature of business. The board of  MPSEZL on Nov 21,2011 has approved a proposal to change the company's name to Adani Ports and Special Economic Zone Ltd. and this change in name from MPSEZL to APSEZL has come into effect from Jan.6,2012.

The company is promoted by Adani Group. The group is a business  behemoth based in India having a global footprint with interests in Infrastructure, Power, Global Trading, Logistics, Energy, Port & SEZ, Mining, Oil & Gas, Agri Business, FMCG products, Real Estate Development, Bunkering, etc.

The company has posted a rise of 37.85% in its net profit at Rs 577.03 crore for the quarter ended JUNE 30, 2014 as compared to Rs 418.59 crore for the same quarter in the previous year. Total income of the company decreased by 13.9% at Rs 1245.78 crore for quarter under review as compared to Rs 1446.86 crore for the quarter ended JUNE 30, 2013. For the year ended March 31, 2014, the company has posted a jump of 9.61 % in its net profit at Rs 1741.00 crore as compared to Rs 1588.35 crore for the same period in the previous year. Total income of company improved by 34.87% at Rs 4823.99 crore for year under review as compared to Rs 3576.63 crore for the period ended March 31, 2013. Upgrade FY15E/16E EPS by 4.2%/5.6% earnings accretion from newer ports help to achieve CAGR of 30% in next two years.

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