Shares of this large-cap stock jumped close to 3 percent in Tuesday’s trading session after a well-known Brokerage firm raised the target price of the company based on the prospects it could offer.
With a market capitalization of Rs 2.59 lakh crores, the stocks of Adani Ports & Special Economic Zone Limited opened their trading hour on Tuesday at Rs 1,184.05 and closed at Rs 1,196.75.
The scrip witnessed an intra-day high price, also marked as the new 52-week high price, of Rs 1,229.90 which indicates a gain of around nearly 3 percent compared to the previous closing levels of Rs 1,168.70 apiece.
Such bullish stock price behavior is observed after Motilal Oswal, one of the well-known Brokerage Firms based in India, raised the target price of the company to Rs 1,410 per share, viz, a potential upside of around 18 percent compared to the prevailing stock price level.
The Brokerage expects volume momentum to continue supported by the improvement in utilization levels of existing ports as well as improving global trade. It expects volumes for FY24 to surpass the revised volume guidance of 400 Million Metric Tons (MMT).
In addition to the above, the Brokerage mentioned that the operational ramp-up at the recently acquired ports is expected to drive a 14 percent growth in cargo volumes over FY23-26 driving the revenue, EBITDA, and PAT at a compounded growth rate of 19 percent, 18 percent, and 17 percent respectively over the same period.
Coming onto the financials of the company, the basic business indicators such as operating revenues as well as after-tax profits showed movements in opposing directions.
The former, on one end, grew from Rs 6,247.55 crores during Q1FY23-24 to Rs 6,646.41 crores during Q2FY23-24, and, the latter, on the other end, slipped from Rs 2,194.63 crores to Rs 1,715.81 crores due to increased operating expenses.
As per the recent presentations, the company’s port business has recorded its highest-ever six-month cargo volumes at 202.6 MMT during H1FY24, reflecting a 14 percent YoY jump. The growth was led by liquids (21 percent), containers (18 percent), and dry cargo (10 percent).
Adani Ports & Special Economic Zone Limited is a port infrastructure company based in India that owns, operates, develops, and maintains port terminals and port infrastructure in the country. Deriving a majority of revenue domestically, the company also owns a private railway system to transport container cargo and other logistics services.
Written by Amit Madnani
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