Adani Ports and Special Economic Zone Ltd is trading near its 52-week low of Rs 651.95. In the last month, the stock has dropped by 9%. In Friday’s trading session, the stock closed at Rs 678.30. The current level represents an approximate decline of 38% from its 52-week high of Rs 924.65.
The company was formerly known as Mundra Port and Special Economic Zone Limited. It was incorporated in 1998 and is categorised as a Large Cap company with a market capitalisation of Rs 1,41,602 Crores. APSEZ is India’s largest port developer and operator comprising 12 ports and terminals with a 498 MMT of augmented capacity.
In FY22, the company earned a revenue of Rs 1,59,340 Crores and a net profit of Rs 47,280 Crores. The total revenue of the company has grown at a five-year CAGR of 13.5% while the net profit has grown at 3.7% CAGR over the same period.
The industry Price to Earnings ratio is 23.03 While the Adani ports has a TTM PE ratio of 29.95. This shows that the company is slightly overvalued as compared to the sector.
Global brokerage firm Citi has assigned a buy call on Adani ports. The target price given by them is 981 which represents an upside of 45%.
The management of the company also emphasised being net free cash flow positive, maintaining a comfortable leverage ratio, investment-grade rating, and 20-25 per cent dividend payout ratio, the brokerage added.
Written By – Anoushka
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