Adani Ports & Special Economic Zone Share Price Highlights 24 June 2024

“With Adani Ports joining the S&P BSE Sensex, investors are evaluating whether to explore the new entry or wait. With a market cap of Rs 3,20,932 crore, Adani Ports is a leading player in the Indian Post and logistics space. It has delivered nearly 99.24% return within a year and offered a dividend of 0.34%, with an ROE of 15.32%. The company generates 90.43% of its revenue from ports and the rest from other business divisions. Notably, its Net Profit recorded a Y-o-Y growth of 76.2% at Rs.2,039 crore, while its Net Operating Profit stood at Rs.4,029 following a Y-OY growth of 23.2%. On the other hand, the company stock has a PE ratio of 9.57, at par with the sector average, suggesting a fair valuation. Also, the 6.06 PB ratio says the company is trading higher than its book value, making it risky. However, it’s worth the risk given Adani Ports’ multifold growth potential in a business category where it’s one of the biggest stakeholders to date. Based on technical analysis, the stock was seen trading with an RSI of 56 on daily, 66 on weekly, and 80 on the monthly frame, suggesting a potential pullback and retesting of the price at the Rs. 1,310-1,390 range. Amid these developments, individuals may consider entering the stock at Rs 1,310-1,390 for a target of Rs. 1,500-2,000.” said VLA Ambala, SEBI Registered RA & Co-Founder of SMT

A report said that APSEZ had a capex of ₹465bn, between FY22-24 including ₹276bn for acquisitions, and ₹42bn in dividends were funded by ₹281bn in cash profit, ₹100bn rise in net debt, ₹41bn reduction in net working capital (NWC), and ₹83bn from share issuance. The NWC to sales ratio improved significantly, dropping from 51% in FY21 to 9% in FY24. Despite this progress, there is still room for further improvement in NWC efficiency.

Addressing the Annual General Meeting (AGM) of Adani Enterprises, Group Chairman Gautam Adani says, “We are Stronger Than Ever. And our best is yet to come”.

Speaking about the Hindenburg charges, Gautam Adani said, “We were faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work. In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established.” - ANI

“As per the Ministry of Port, Shipping and Waterways, over the next few years, most of the major ports will improve their capacity to accommodate bigger ships. More than 90% of India’s trade by volume is conducted via the country’s maritime route. There is a continuous need to develop India’s ports and trade-related infrastructure to accelerate growth in the manufacturing industry and to support the ‘Make in India’ initiative.

It is very tough for any new player to enter this business as most of the strategic locations are controlled by only two players: Adani Ports and JSW Infra. There are huge opportunities for Adani Ports, as Mundra Port has announced a significant expansion of its capacity to 514 million tonnes. Additionally, Adani Ports will enter the S&P BSE Sensex today, which can lead to substantial FII inflows. Technically, we are bullish on the stock for higher levels of 1750+.” says Vinod Jhaveri, an independent analyst at Pure Technicals.

Addressing the Annual General Meeting of Adani Enterprises on Monday, Chairman Adani Group, Gautam Adani, said that despite a challenging year, the Adani Group of companies have performed exceptionally well. 

He highlighted that in 2023, the Adani Group made record-breaking achievements and executed large-scale projects. “Our record-breaking achievements in 2023 underscore our alignment to national priorities as well as our ability to execute the most complex, large-scale projects with unmatched expertise,” said Gautam Adani, Chairman, Adani Group. - ANI

Shares of Adani Ports & SEZ have been included for trading on BSE Sensex starting today, June 24, 2024, as part of the index rejig. The Adani Group stock has replaced Wipro.

As of 11.48 am, Adani Ports stock declined by 1.73 per cent on the BSE to trade at ₹1,460.

A report by Nuvama Alternative and Quantitative Research on Friday stated that the stock of Adani Ports would receive inflows worth $259 million. 

The brokerage estimated Wipro’s outflow to be $170 million.

InCred Equities reported that despite significant capital expenditures and acquisitions totalling ₹465 billion over FY22-24, APSEZ’s balance sheet remains healthy. The company funded these expenses through ₹281 billion in cash profit, a ₹100 billion increase in net debt, ₹41 billion reduction in net working capital, and ₹83 billion from share issuances. Notably, 60% of the capex was covered by internal accruals, with a stable NED/EBITDA ratio and minimal related party dues of ₹13 billion billion in FY24.

InCred Equities Growth Projections report states that the Cargo volume is expected to grow at a CAGR of 8.5% over FY24-26F. Coal volume growth is projected at 12% CAGR, driven by ramp-ups in Adani Power and Tata Power plants. Container volume is estimated to grow at a 10% CAGR, outperforming the sector’s 7% CAGR.

Starting today, June 24, Adani Ports & Special Economic Zone (SEZ) will mark it’s entry to the Bombay Stock Exchange and will replace Wipro from the 30-stock index as part of the semi-annual rejig.