Buy Adani Ports; target of Rs 345: KRChoksey

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26 Aug, 2025 12:21

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KRChoksey`s research report on Adani Ports“APSEZ reported standalone Adj. EBITDA of Rs. 592 crore is below to our expectations of Rs. 664 crore primarily led by lower volume growth (+8%, YoY). The overall Mundra Standalone Volume 26.75 MT (+8%, YoY) is lower our expectation of 15% volume growth while revenue grew to Rs. 850 crore (+7%, YoY) and average realizations held at Rs. 387 per ton. APSEZ reported Rs. 200 crore other operating income from SEZ (LNG terminal, GLL) and booked Rs. 28 crore costs on it. Management indicated 15% volume growth and stable margins for FY15E which is led by container, coal and crude. Commercialization of CT4 makes Mundra the largest and unique port to handle these volumes. Coal, another constituent will lead this volume in future. Mundra handled volume 26.75 MT (+8%, YoY) which is contributed by coal 10.2 MT, Crude 2.02 MT, containers 9.72 MT and others (4.63) MT.""Dahej handled 3.27 MT (+31%, YoY) and reported revenue Rs. 253 crore and EBITDA Rs. 175 crore. Hazira handled 1.45 MT (+48%, YoY) and reported revenue Rs. 216 crore and EBITDA of Rs. 157 crore. Dhamra handled 3.46 MT volume and reported revenue Rs. 254 crore and EBITDA Rs. 152 crore. ALL reported revenue Rs. 375 crore and EBITDA Rs. 101 crore. Vizag and Goa also has started operations and contributed 0.2MT & 0.5 MN volumes respectively. The company completed coal terminals at Murmugao and Vizag ports (eight months ahead of schedule). Both ports are operational now. Kandla port is expected to start operations from end-CY2015. Dhamra Port is consolidated in financials, Dhamra debt is refinanced that will save Rs. 37 crore per year. Rs. 2,200 crore refinance debt still lying in balance sheet due to transaction happened at the end of quarter which will be repaid. Further, the 50:50 JV agreement with CMA CGM, the world’s 3rd largest container shipping line, develop and operate a new 1.4 million TEU Container Terminal at Mundra to make it largest container port with a total capacity of 5.5 million TEUs. ""At CMP Rs. 297, APSEZ is trading at EV/ EBIDTA of 18.7x & 14.4x to FY16 financials. Considering strong cargo volume and operating cash flow of the company, we recommend “BUY” with TP of Rs 345,” says KRChoksey research report.

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