Adani Ports share at new high, mcap over ₹2L cr; investor’s wealth almost tripled in 2 years | Whuff News


Adani Group’s ports major Adani Ports on Tuesday hit a new all-time high on the stock exchange amid investor buying sentiment in the broader market. The market level of the company intersects 2 lakh crore during the day. Adani Ports has performed on the upside for the sixth consecutive trading session. So far in the current month, the stock has jumped more than 13%. This Adani stock is a multibagger and has almost three times the investor’s wealth.

On the BSE, shares of Adani Ports rose 10.20 or 1.09% to settle on 948.85 each. The stock has hit new all-time highs 953.80 apiece in trading hours – resulting in at least a 1.6% gain on Tuesday over the previous close.

The company’s market valuation is approx 2,00,432.53 crore at the closing price.

So far in September, Adani Ports shares have gained over 13.25% on Dalal Street.

Earlier this month, Adani Ports announced its operational performance for August 2022.

In August 2022, the company handled 29.3 MMT of cargo implying an increase of 18% yoy. During the month, dry bulk volumes increased by 44% and containers by 8%. Further, Adani Ports emphasized that in a record 49 days, the Company achieved a cargo throughput of 50 MMT (YTD cargo volume increased from 100 MMT to 150 MMT).

In the first five months of FY23, Adani Ports handled 151.4 MMT of cargo, an 11% increase over the same period last year, which benefited from the post-COVID volume surge.

Notably, Adani Ports recorded the highest quarterly cargo volume in Q1FY23. During the quarter, the company handled 90.89 MMT of cargo (including 9.09 MMT at Gangavaram Port), which is ~8% YoY growth.

Adani Ports is a multi-bagger stock

In a year, Adani shares have increased by more than 27%. Stock is below 745 people on September 13 last year.

Meanwhile, within two years, Adani Port has emerged as a multibagger with a profit of almost 177% from 2.7 times. The stock is all around 342 each on 11 September 2020. That said, the wealth of investors in Adani Ports has almost tripled in 2 years.

Adani Ports is India’s largest commercial port operator accounting for nearly a quarter of the country’s cargo movement. Its presence across 13 domestic ports in the seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha gives it the widest national footprint with deeper hinterland connectivity.

The company’s port facilities are equipped with state-of-the-art cargo handling infrastructure that is not only best-in-class, but is also capable of handling the largest vessels calling at Indian shores. Its ports are equipped to handle a variety of cargo, from dry cargo, liquid cargo, crude to containers.

Adani Port Overview

In the first quarter of FY23 (April – June 2022), Adani Ports recorded a 16.09% decline in consolidated net profit to 1,072.38 crore as against 1,277.99 crore in the same period last year. Meanwhile, consolidated revenue from operations increased by 20.62% to 4,637.95 crore in Q1FY23 compared to 3,845.03 crore in Q1FY22.

Last month, releasing a revised Q1 report for Adani Ports earnings, Research Analyst Ashish Shah and Vaibhav Shah Research Associate of Centrum said, “APSEZ has guided for 12-15% growth in cargo to 350-360mt in FY23 (312mt in FY22). Revenue guidance consolidated/EBITDA is Rs192-198bn/Rs122-126bn.Recovery in thermal coal volume imports is one of the key catalysts for FY23 volume guidance.Apart from APSEZ’s ongoing cargo diversification efforts should help volume additions in containers (@ Gangavaram) , LNG at Dhamra , and more dry and liquid cargo at major ports. The new link will help container cargo recovery at Krishnapatnam.”

Further, Centrum notes, “APSEZ has set a target for itself to become an Integrated Transport Utility providing end-to-end solutions with a targeted cargo handling of 500mt by FY25. The recent acquisition of Haifa Port in Israel and the upcoming container terminal in Sri Lanka are part of its global expansion strategy. Domestically, APSEZ wants to consolidate its presence in existing locations by adding new cargo streams and capacity expansion focused on non-coal cargo. Rail logistics and Agriculture businesses are being ramped up ~3x from FY22 levels and APSEZ is targeting 60m ft sq ft of Grade warehousing capacity by FY25 (0.8m sq ft in FY22).”

“APSEZ’s ambitious CAPEX plan is supported by its strong cash flow, although a surge in intensity over the next three 3 years will constrain ROCE expansion. A higher sticky cargo share (@49% in FY22) protects against disruptions and makes the portfolio APSEZ assets are resilient,” the report added.

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