Adani Ports and Special Economic Zone Limited is India’s largest port developer and operator, operating India’s largest private ports with a network of 12 terminals including the largest container port, Mundra Port, as well as providing Dry Cargo Handling & Storage.
The company’s stock closed at a price of Rs 740 on Wednesday, with a market capitalization of Rs 1,59,601 crores.
As per recent impressive results of FY 22-23. its net profit rose to Rs 1,140.97 crore in Q4FY23 from Rs 1,111.63 crore in Q4FY22. Further, revenue from operations increased by 40 percent to Rs 5,796.85 crore from Rs 4,140.76 crore in the corresponding quarter last year.
On a YoY comparison of the metrics, the revenues significantly improved from ₹ 19,342.51 crores during FY 21-22 to ₹ 22,405.39 crores in FY 22-23. The PAT numbers have shifted upwards by 9 percent within the same timeframe mentioned, from ₹ 4,953.18 crores to 5,392.75 crores. And EBITDA margin expanded to 56.4 percent from 49.7 percent posted a year ago.
The company’s board has recommended a dividend of Rs 5 per equity share of Rs 2 each fully paid up for the financial year 2022-23.
Having a positive outlook for the Adani Ports and Special Economic Zone Limited, Nomura Research gave a ‘Buy’ tag to the company with a target price of Rs 1,025 indicating an upside of 39 percent as compared to the current price levels.
The rationale behind giving such a recommendation is that the company’s Q4 performance was better than expected, and management is concentrating on deleveraging pledge shares by FY24. Cargo volumes are expected to reach 370-390 million metric tonnes (MMT), generating revenue of around Rs 24,000-25,000 crore.
As per the latest shareholding pattern data for the March quarter, promoters hold a 61.03 percent stake in the company, and Foreign Institutional Investors (FIIs) hold a 17.99 percent stake in the company.
Written by Omkar C
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