Adani Ports and Special Economic Zone’s (APSEZ) share price zoomed 8.91% on Wednesday’s early trades to reach an intraday high of ₹ 602.45 apiece on the National Stock Exchange (NSE). This happened after the company said that it is considering a loan repayment of ₹ 5,000 crores. The company’s shares quoted at ₹ 598.15 apiece at 01:59 PM.
Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone said, “Continuing with our growth journey, APSEZ is targeting FY24 EBITDA of Rs 14,500-15,000 Cr. Besides an estimated capital expenditure of INR 4,000-4,500 Cr, we are considering total loan repayment and prepayment of around Rs 5,000 Cr, which will significantly improve our Net Debt to EBITDA ratio and bring it closer to 2.5x by March 24.”
During the nine months that ended December 31, 2022, APSEZ handled ~24% of the country’s total cargo and retained its leadership position of being India’s largest port operator. The company’s EBITDA grew 20% Y-o-Y to ₹ 9562 Cr, on the back of strong improvement in realizations and cargo volume growth.
On a consolidated basis, the company’s revenue from operations grew by 17.54% to ₹ 4786.17 crores against ₹ 4071.98 reported in the same quarter last year. However, its net profit for the quarter decreased by 12.95 % to ₹ 1336.52 crores from ₹ 1535.28 crores reported in the corresponding quarter last year.
Meanwhile, CLSA has a buy rating on the shares of Adani Ports with a price target of ₹ 700, which indicates an upside of 17.02 % as compared to its current share price of ₹ 598.15.
Goldman Sachs has a buy rating with a target price of ₹ 840 indicating an upside of 40.43% as compared to its current share price.
Written by Simran Bafna
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