India’s largest private port operator saw a significant increase in its share price this week, rising by 6%, following its inclusion in the S&P BSE Sensex index starting June 24. This move is expected to bring in an estimated $259 million in investments into the stock. 

Adani Ports & Special Economic Zone is in the business of development, operations, and maintenance of port infrastructure and is also linked to a multi-product Special Economic Zone (SEZ) and related infrastructure contiguous. 

Over the past six months, the company’s shares have yielded returns of 45%, and over the course of a year, they’ve soared by 98%. The company has a total market capitalization of ₹3,19,269 crores. 

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Adani Ports & SEZ shares will start trading on the S&P BSE Sensex index starting June 24 as part of the scheduled index rebalancing. In this adjustment, Adani Ports will replace Wipro, which will be excluded from the Sensex. The changes are effective from today, June 21. 

According to Nuvama Alternative and Quantitative Research, Adani Ports’ inclusion in the Sensex is expected to attract inflows of $259 million in today’s trading session, while Wipro’s exclusion may lead to outflows of $170 million. 

The company’s revenue witnessed a 20% annual increase, climbing from ₹ 5,797 crore in Q4 FY23 to ₹ 6,896 crore in Q4 FY24. Simultaneously, net profit surged by 77%, from ₹ 1,139 crore to ₹ 2,015 crore. 

In Q4 FY24, Mundra Port handled a cargo volume of 180 MMT in FY24, and the company’s management expects to manage 200 MMT in FY25. Looking ahead to FY25, the company’s management anticipates revenue to range between Rs 29,000 crore and Rs 31,000 crore. 

EBITDA also saw a significant boost, rising by 20.3% year-on-year to Rs 4,102 crore, with the EBITDA margin expanding by 220 basis points to 58.6% from the previous year’s 58.4%.

Adani Ports anticipates its EBITDA for the financial year 2025 to range between ₹ 17,000 to ₹18,000 crore. At the upper end of this range, it represents a 13% increase over the ₹ 15,864 crore reported in the previous fiscal year. 

The company plans to allocate between ₹10,500 crore to ₹11,500 crore for capital expenditure in FY25. This allocation includes ₹7,300 crore for the Ports business, ₹400 crore for Marine Services, ₹2,300 crore for Logistics, and ₹ 1,500 crore for Decarbonisation initiatives. 

Recently, Global brokerage firm Citi has revised its target price on the shares of Adani Ports, raising it from ₹1,758 per share to approximately ₹1,782 apiece. 

As of 12:55 p.m. on Friday, Adani Ports and Special Economic Zone Ltd. shares were trading at ₹1,484 each on the National Stock Exchange, marking a 0.91 percent decrease from the previous close. 

Written by Omkar Chitnis 


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