Buy Adani Ports & Special Economic Zone, target price Rs 900: ICICI Direct

ICICI Direct has buy call on Adani Ports & Special Economic Zone with a target price of Rs 900. The current market price of Adani Ports & Special Economic Zone Ltd. is Rs 854.45.

Time period given by analyst is one year when Adani Ports & Special Economic Zone Ltd. price can reach defined target.

Adani Ports & Special Economic Zone Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 180618.47 Crore) operating in Shipping sector.

Adani Ports & Special Economic Zone Ltd. key Products/Revenue Segments include Income from Port Services, Infrastructure Leasing Income, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 4422.73 Crore, up 8.75 % from last quarter Total Income of Rs 4066.78 Crore and up 3.46 % from last year same quarter Total Income of Rs 4274.79 Crore. Company reported net profit after tax of Rs 1423.15 Crore in latest quarter.

Investment Rationale
Port revenues are expected to remain flattish in the Rs 2600 crore range, led by higher commodity prices, ports congestion and geo-political impact on the global container market. Overall, revenues are expected to remain flat YoY at Rs 3724 crore, impacted mainly by lower coal offtake (elevated international prices and higher supply of domestic coal). Similarly, EBITDA is expected to remain flat as EBITDA margins are expected to remain range bound in 63-64% (ex-forex). Further, PAT is expected to grow 8% YoY

Promoter/FII Holdings
Promoters held 63.83 per cent stake in the company as of 31-Dec-2021, while FIIs owned 15.27 per cent, DIIs 15.87 per cent.