Tag: Adani Ports

Adani Ports Share Price: 90% analysts remain bullish; See target of up to ₹1,782

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Adani Ports & Special Economic Zone Ltd. will be in focus on Friday as a couple of top brokerages raised their price targets and some even retained their bullish outlook after the company reported a healthy performance in the fourth quarter of financial year 2024.

Global brokerage firm Citi has raised its target price on the stock from ₹1,758 per share to around ₹1,782 apiece, implying an upside of nearly 33%. The foreign brokerage said that Adani Ports not only reported a strong fourth quarter numbers but also gave a healthy a FY25 guidance.

Referring to Adani Ports as its top pick, Citi said the company has high quality and dominant underlying business and attractive valuations.

The brokerage in a note said that Adani Ports’ strong capex planned in FY25 not only underlines strong cash flows and balance sheet but also is an indication of intent to accelerate growth.

Another top broking firm Jefferies has maintained a ‘Buy’ recommendation on Adani Ports with an increased share price target of ₹1,640. HSBC finds the stock worth ₹1,560.

Jefferies said that Adani Ports will continue to gain market share; however, its March quarter operating profit or EBITDA was 5% lower than expectations as realisations were a tad lower.

The brokerage said that FY25 volume guidance at 460-480 MT, about 10-14% rise year-on-year, is in line with estimates. It also said that the management commentary was confident on a double digit growth.

HSBC said that Adani Ports’ FY25 guidance implies 10-14% growth, which it believes is achievable. The brokerage forecasts 15% EBITDA CAGR in FY24 to FY27.

Its FY25 EBITDA estimate is 4% above the higher-end of the company’s guidance range.

HSBC said that Adani Ports, India’s largest port operator, has the strongest ports and logistics ecosystem in the Asia transport coverage.

Adani Ports Q4 Update

The company’s Mundra Port handled 180 MMT cargo volume in FY24 and the firm said that it is well placed to cost 200 MMT in FY25.

Adani Ports reported a net profit growth of 76% compared to the year-ago period to ₹2,039 crore in the March quarter. The growth in the company’s bottom-line came despite a one-time loss of ₹373 crore during the quarter.

The firm incurred an expense of ₹215.9 crore with regards to a one-time settlement opted by employees of one of its foreign subsidiaries. It also saw a reclassification adjustment pertaining to transfer of foreign currency translation reserve worth ₹157.8 crore from other comprehensive income to the profit and loss account.

Its topline stood at ₹6,896.5 crore, up 19% for the January-March quarter. For the full financial year 2024, the company reported revenue of ₹26,711 crore.

For FY25, Adani Ports has guided for revenue to be in the range of ₹29,000 crore to ₹31,000 crore.

EBITDA increased by 20.3% year-on-year to ₹4,102 crore. While EBITDA margin expanded by 220 basis points to 58.6% from 58.4% last year.

Adani Ports expects EBITDA for financial year 2025 to be between ₹17,000 to ₹18,000 crore. At the higher end, this will be 13% higher than the ₹15,864 crore the company reported in the previous financial year.

The firm intends to spend between ₹10,500 crore to ₹11,500 crore in FY25 as capital expenditure. Out of the total capex, ₹7,300 crore is earmarked for the Ports business, ₹400 crore for Marine Services, ₹2,300 crore for Logistics and ₹1,500 crore for Decarbonisation.

Shares of Adani Ports ended 1.25% higher at ₹1,341.50 on Thursday. The stock has gained 100% over the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports Q4 Results: Profit up 76% despite one-time loss; FY25 volumes seen between 460 – 480 MT

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports & Special Economic Zone Ltd. has guided for cargo volumes to range between 460 MT to 480 MT in financial year 2025, which will be a growth of 23% when compared to the higher end of the revised guidance of 390 MT for financial year 2024.

The company’s Mundra Port handled 180 MMT cargo volume in financial year 2024 and the company said that it is well placed to cost 200 MMT in financial year 2025.

India’s largest port operator reported a net profit growth of 76% compared to the year-ago period to ₹2,039 crore in the March quarter, it said in an exchange filing.

The growth in the company’s bottom-line came despite a one-time loss of ₹373 crore during the quarter.

Adani Ports incurred an expense of ₹215.9 crore with regards to a one-time settlement opted by employees of one of its foreign subsidiaries. It also saw a reclassification adjustment pertaining to transfer of foreign currency translation reserve worth ₹157.8 crore from other comprehensive income to the profit and loss account.

Revenue growth for the quarter stood at 19%. The company reported a topline of ₹6,896.5 crore for the January-March period. For the full financial year 2024, the company reported revenue of ₹26,711 crore.

For financial year 2025, Adani Ports has guided for revenue to be in the range of ₹29,000 crore to ₹31,000 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation increased by 20.3% year-on-year to ₹4,102 crore. While EBITDA margin expanded by 220 basis points to 58.6% from 58.4% last year.

Adani Ports expects EBITDA for financial year 2025 to be between ₹17,000 to ₹18,000 crore. At the higher end, this will be 13% higher than the ₹15,864 crore the company reported in the previous financial year.

The company intends to spend between ₹10,500 crore to ₹11,500 crore in financial year 2025 as capital expenditure. Out of the total capex, ₹7,300 crore is earmarked for the Ports business, ₹400 crore for Marine Services, ₹2,300 crore for Logistics and ₹1,500 crore for Decarbonisation.

Adani Ports has also announced a dividend of ₹6 per share, which is the highest in the company’s history.

Shares of Adani Ports are trading 1.1% higher at ₹1,339.95. The stock has risen 28% so far in 2024.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports and SEZ reports 12% growth in cargo volumes in April

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports and Special Economic Zone Ltd (APSEZ) on Thursday reported a 12% year-on-year growth in cargo volumes in April 2024.

The Adani group company in an exchange filing said it handled 36.2 MMT of total cargo in April 2024, which is a good 12% YoY growth.

While most domestic ports reported growth in cargo volume in April, Dhamra Port posted the highest monthly cargo volume of 4.38 MMT, APSEZ said.

Across categories, dry cargo volume rose by 7% year-over-year, liquid and gas by 29% and container volume by 14% over the year-ago period.

The logistics segment also reported growth with rail volumes rising by 5% YoY to 49,430 TEUs and GPWIS volumes increasing by 26% to 1.8 MMT.

APSEZ shares dropped more than 1% to hit a low of ₹1307.2 apiece on BSE in morning trade. The stock opened higher at ₹1335.25 per share but could not hold onto gains.

APSEZ shares were trading 0.85% down at ₹1313.55 per share on BSE at 9.50 AM.

The Adani group on Tuesday announced that CARE Ratings had assigned ‘AAA’ – the highest possible credit rating in India – to the company.

Adani Ports and SEZ is the first private corporate infrastructure developer to be rated AAA, the company claimed.

The rating is driven by the company’s robust integrated business model, strong industry position, consistent market share growth with healthy profitability, coupled with high liquidity and low leverage.

Adani Ports and SEZ is the largest port developer and operator in India with 14 strategically located ports and terminals representing 27% of the country’s total port volumes.

It has seven ports and terminals on the west coast – Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra and Vizhinjam in Kerala.

It has seven ports and terminals on the East coast of India – Haldia in West Bengal, Dhamra in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu and Karaikal in Puducherry.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Citi expects Adani Ports shares to rise 28%, opens positive catalyst watch

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of Adani Ports & Special Economic Zone (APSEZ) Ltd. will be in focus on Tuesday (April 2) as global brokerage firm Citi remains positive on the stock, in fact, they are opening a 90-day positive catalyst watch on the counter.

Citi has raised its target price on the Adani Ports stock from ₹1,564 per share to around ₹1,758 apiece, suggesting another potential upside of as much as 28% from Monday’s closing price.

Citi in its latest note said that Adani Ports is likely to report a strong quarter in its Q4FY24 earnings, with positive volumes, revenue, EBITDA growth and good cash flow.

The strong volume growth should lead to core-port EBITDA growth of about 29% year-on-year, while consolidated EBITDA and profit before tax is expected to grow 27% and 24% on-year.

The global brokerage added that valuations were still reasonable at 30 times P/E (price-earnings) and 19 times EV/EBITDA on FY25 estimates. Citi believes these valuations leave ample room for upside given quality and scale of underlying business.

Further, Citi highlighted that Adani Ports emerged stronger post a short-seller report last year with a strong business momentum, reduced leverage and increased market dominance.

Also, Morgan Stanley has maintained its ‘Overweight’ rating on the Adani Ports stock, with a target price of ₹1,576 per share. The foreign brokerage said the volume growth for the financial year gone by beat the guidance with eight on 10 ports reporting double-digit growth.

Adani Ports reported its highest-ever monthly cargo volume of 38 million metric tonnes (MMT) in March, it said in an exchange filing on Monday.

With this, the company has handled 420 MMT cargo globally in the financial year 2024, well above the 370-390 MMT it had guided for in January 2024. Adani Ports revised its financial year 2024 guidance in January to 370-390 MMT from 350-370 MMT earlier.

On Monday, shares of Adani Ports settled 2.69% higher at ₹1,378 apiece on the NSE. The stock has gained over 30% so far this year, while it is up 120% over the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports shares rise after acquisition of 95% stake in Gopalpur Ports for ₹1,349 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports & Special Economic Zone Ltd, the largest port operator in India, has entered into definitive agreements to acquire a 95% stake in Gopalpur Ports Ltd. from its existing shareholders for a cash consideration of ₹1,349 crore, it said in an exchange filing on Tuesday.

The transaction implies an enterprise value of ₹3,080 crore and is subject to closing adjustments.

As part of the 95% stake, Adani Ports has acquired a 56% stake from SP Port Maintenance Pvt. Ltd., which is part of the SP Group, and a 39% stake from Orissa Stevedores Ltd.

This transaction is subject to approval from the Commerce and Transport Department of the Government of Odisha and is likely to be completed by the first quarter of the financial year 2025.

The acquisition of Gopalpur Ports makes it the 14th port under the Adani Group’s control in India. It also operates the Haifa Port in Israel. The company currently has a presence in seven maritime states including Gujarat, Maharashtra, Tamil Nadu, Goa and Kerala.

The company’s cargo handling is expected to rise 5% in FY23, thanks to the new acquisition. The revenue of Adani Ports is also likely to move closer to ₹20,000 crore. With this, the Adanis now control 24% of port capacity in India.

Gopalpur Ports Ltd is engaged in the business of handling various types of dry bulk and break bulk cargo and is a deep draft, multi-cargo port. It handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite sand and alumina.

In the financial year 2023, it handled 7.4 million metric tonne (MMT) of cargo and has a capacity of 20 MMT. It is estimated to handle 11.3 MMT of cargo in the current financial year and is expected to earn operational revenue of ₹520 crore, Adani Ports said.

Adani Ports further highlighted that the investment is in line with their strategy of East Coast to West Coast parity and Gopalpur Port’s location will allow it unprecedented access to the mining hubs of Odisha and neighbouring states.

“GPL will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach,” Adani Ports Managing Director Karan Adani said.

“In our view, the Gopalpur Port is all set for strong growth and margin expansion in the financial year 2025 with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders,” he added.

Adani Ports reported a cargo volume growth of 33% in February and mentioned that it is on track to surpass its volume guidance for the financial year 2024.

For the first 11 months of financial year 2024, the company has handled 382 MMT of cargo after February’s data. It crossed the 350 MMT cargo volume mark at its domestic ports in 318 days of the financial year.

Shares of Adani Ports ended 1.1% higher at ₹1,276 last Friday. The stock has gained 103% over the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Group Stocks: All 10 entities trade with losses; Shed ₹1.26 lakh crore in market cap so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

All ten Adani Group stocks, from Ports, Enterprises to Total Gas and Adani Wilmar, and Cement majors ACC & Ambuja are trading with losses between 5% to 10% on Wednesday.

Adani Ports and Adani Enterprises feature among the top five losers on the Nifty 50 index. Both the stocks are trading with losses of over 8% each

Other stocks like Adani Total Gas, Adani Green Energy, Adani Wilmar, ACC, Ambuja Cements are also trading with significant losses in mid-week trading.

With today’s drop, all Adani Group stocks have cumulatively lost ₹1.26 lakh crore in market capitalisation so far. However, that figure is 7.9% of the group’s overall market cap of nearly ₹15.85 lakh crore as of closing on Tuesday.

Shares of Adani Enterprises are down for the seventh day in a row, while those of Adani Ports have shed over 10% in the last two trading sessions.

This is also the biggest single day drop that shares of Adani Green Energy have witnessed in 2024 so far.

Most other Adani Group stocks are down for the second day in a row.

Adani Group stocks are also declining in-line with the pain in the broader markets on Wednesday where the Nifty Midcap and Nifty Smallcap indices are down over 4% each. Both the broader market indices are down for the third day in a row.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports shares at ₹1,600? Motilal says company well-positioned to beat FY24 guidance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports and Special Economic Zone Limited clocked a cargo volume of 382 million metric tonnes (MMT) in the 11 months of this fiscal (11MFY24), recording a 24% year-on-year (YoY) growth. With a monthly cargo run rate of 35 MMT, domestic brokerage firm Motilal Oswal Securities expects Adani Ports to surpass even its revised cargo volume guidance of 400 MMT during FY24.

The logistics business, Motilal said, continues to do well, with year-to-date rail volume up 21% YoY in FY24.

The domestic brokerage has maintained its ‘Buy’ rating on the Adani Ports stock and revised its target price to ₹1,600 per share, suggesting another 21% potential upside ahead for the counter.

Adani Ports has a diversified cargo mix along with sticky cargo and customer base, Motilal said. It continues to gain market share while generating strong cash flows and maintaining its leverage position, with a net debt-to-Ebitda ratio of 2.5 times, the brokerage said while increasing its volume estimates for the Adani Group company by 2-3% for FY24-26.

Over FY24-26, Motilal expects the port operator and logistics company to register a 10% volume growth and a CAGR of 15% in sales, 16% in Ebitda and 18% in profit after tax.

Global broking firm HSBC has also assigned a ‘Buy’ rating on the Adani Ports stock, saying robust throughput growth continued in February 2024. It said the company is on track to beat its 400 MMT target for FY24.

Given that the company continued its strong growth in February, HSBC has raised its EBITDA forecasts for Adani Ports by 1-4% for FY24-26, implying a 19% CAGR.

The foreign brokerage has raised its target price to ₹1,560 from ₹1,370 per share, with a potential upside of 18%.

Citi Research, meanwhile, in its note said the company is well positioned to grow reasonably faster than industry due to its presence across both coasts of India.

Citi has a ‘Buy’ recommendation on the counter with a target price of ₹1,564, implying a further upside of 11.7% from the current market levels. Adani Ports remains Citi’s top pick in India infrastructure space.

“A big part of the strategy is to grow sticky cargo by providing customised services — customised infrastructure at ports, dedicated inland logistics such as trains and multi-modal logistics parks — and strategic joint ventures with large customers in global shipping lines,” the brokerage noted.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports cargo volumes grow 33% in February, on track to surpass FY24 guidance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports & Special Economic Zone Ltd., India’s largest ports operator handled 35.4 MMT of total cargo in February, the company said in an exchange filing. The figure is a 33% jump from the cargo it handled in February last year.

Additionally, the Adani Group company’s Dhamra Port recorded its highest-ever monthly cargo of 4.22 MMT.

For the first 11 months of financial year 2024, the company has handled 382 MMT of cargo after February’s data. It crossed the 350 MMT cargo volume mark at its domestic ports in 318 days of the financial year.

The company said that it is well on track to surpass the 400 MMT mark before the end of the financial year.

In January this year, the company had raised its full-year cargo volume guidance to 400 MMT from the earlier guidance of 370 – 390 MMT.

The company’s logistics segment also continued to report record growth in the logistics segment with rail volumes registering a year-to-date growth of 5.42 lakh TEUs (Twenty-Foot Equivalent Units).

For the December quarter, Adani Ports reported a net profit growth of nearly 70% year-on-year to ₹2,208.4 crore. Revenue for the quarter also went up by nearly 45% from last year.

Shares of Adani Ports were among the first ones to cross their pre-Hindenburg saga prices and have nearly doubled over the last 12 months with a 93% surge.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports among top Nifty 50 gainers, analysts see up to 12% upside in stock after Q3 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Ports and Special Economic Zone shares gained about 5% in the trading session of February 2, a day after the company reported its financial results for the October to December 2023 quarter.

Adani Ports stock was among the top three Nifty 50 gainers after India’s largest private port operator reported a nearly 68% year-on-year surge in third-quarter profit helped by a jump in cargo volumes and higher tariffs.

Its net profit rose to ₹2,208.4 crore while revenue for the quarter under review went up by 44.6% to ₹6,920.1 crore from ₹4,786.1 crore during the same period last year.

EBITDA or earnings before interest, tax, depreciation and amortisation also increased by nearly 60% from last year to ₹4,292 crore. EBITDA margin expanded by 600 basis points to 62% from 56% last year.

“Adani Ports recorded its strongest ever Q3 and nine-month performance with the highest ever revenue, EBITDA and cargo volumes and is on course to overachieve its full-year guidance provided at the start of the year,” said Ashwani Gupta, the CEO of Adani Ports.

What brokerages make of Adani Ports Q3 results

Brokerage firm Bernstein called it a strong quarter on all fronts, from volume to net income. It also pointed out that the firm’s capex for the first nine months of financial year 2023-24 was ₹5,500 crore as against its initial guidance of ₹4,500 cr for the full year.

However, the brokerage believes that the global turmoil in the Red Sea could impact the company’s near-term performance.

Bernstein has an outperform call on the company with a target price of ₹1,243, which is about 2% more than its last closing price on February 1.

Also Read: Adani Ports raises cargo volume guidance for FY24

HSBC, meanwhile, has raised its target price to ₹1,370 with a buy rating as it believes strong container and dry bulk volumes led to record quarterly throughput and profit.

It also highlighted that Adani Ports met its deleveraging target earlier than its end FY24 goal and that robust cash flows should support future growth ambition. According to the brokerage, EBITDA margin improvement was driven by efficiency gains and better utilisation.

Adani Ports shares were trading 4.8% higher than its previous close at ₹1278.30 on BSE at 12:23 pm.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow