Adani Ports Stock Price :Adani Group’s stock is a great opportunity to invest in Adani Ports and Special Economic Zone. This share is trading at Rs 1200, a huge discount of 25 percent from its 1 year high of Rs 1608. The stock had made its one-year high on June 3, 2024. Brokerage house Nuvama has advised investment in the stock with a high target price of Rs 1960. This means that Adani Ports stock can give 63 percent return compared to the current price. The company’s fundamentals are strong and this estimate regarding the stock suggests that it is unaffected by the recent bribery allegations against Adani Group. The brokerage house has highlighted some important things behind the rise in shares.
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Ready to expand in India
Barring any acquisitions, APSEZ is targeting 1,000mnt cargo volume by 2030, which means it is targeting 15% CAGR growth. Consolidated revenue/EBITDA is expected to grow at a CAGR of 20%/18% in FY24-29, mainly led by ports (16%/17% CAGR). APSEZ currently has a domestic installed capacity of 633mnt and is poised for expansion in India. Whereas the international presence is to capture important trade routes (South East Asia-Africa-Middle East) on a large scale. That too will be done through collaboration with strong local partners (as seen in Sri Lanka, Haifa and Tanzania).
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Logistics Business Key Growth Drivers
Logistics business will be a key growth driver for the company (estimated 46%/48% CAGR in Revenue/EBITDA over FY24-29, on a low base), as the company will be a key growth driver for the company across the value chain (container/non-container movement, warehousing and multimodal logistics parks). ) focuses on. It is in the process of building a significant land bank and has done a capex of Rs 100-120 billion so far and is likely to have a capex of Rs 200-250 billion by FY2029. Trucking and container racks will contribute two-thirds to logistics revenue by fiscal year 2029.
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balance sheet strong
APSEZ’s balance sheet remains strong. Net debt to EBITDA has increased from 3.3x in FY21 to 2.0x in H1FY25, which is within the limit of 3.5x. APSEZ expects OCF to grow at 18% CAGR to Rs 345 billion in FY29 (FY24-29), implying a strong 95% OCF/EBITDA ratio.
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Vizhinjam, India’s first semi-automatic transshipment terminal, is expected to be formally commissioned in Dec-24, with an initial nameplate capacity of 1 million TEU and 3 million TEU by 2028 (after Phase-2). Due to semi automation APSEZ can do volumes 30-40% more than nameplate capacity. APSEZ’s share in the capex in Phase 1 is Rs 35-40 billion (the rest is supported by the central and state governments). Investment in Phase 2 will be less as the initial investment is generally higher.
Share holding pattern (up to September quarter)
Promoters: 65.89%
FII: 15.22%
DII: 13.26%
Mortgage: 0.03%
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
