Adani Ports Shares Fall Despite Q2 Beat

A depreciating rupee dragged the profits of the Adani Ports in the July-September quarter.

A view of a container terminal is seen at Mundra Port in Gujarat. (Photo: Amit Dave/Reuters)

Shares of Adani Ports and Special Economic Zone Ltd. declined even as its second-quarter beat estimates, aided by a strong volume growth.

Here's what brokerages made of quarterly results

Nomura

  • Maintains 'Buy' with a target price of Rs 1,025, implying a potential upside of 21.7%.

  • Nomura says strong results with guidance retained and potential upside from improving logistics.

  • Management has retained volume guidance for FY23 despite global trade headwinds.

  • Improving ROCE in logistics segment and potential land sale in SEZ can emerge as catalysts.

Axis Capital

  • Maintains 'Add' with a target price of Rs 948, implying a potential upside of 13%.

  • Axis Capital says strong per ton realisation in port business and low tax rate drive earning beat.

  • Consolidated port and logistics income both grew at 30% YoY in Q2.

BofA Securities

  • Reiterate 'Buy' rating with price objective of Rs 943, implying a upside potential of 12.12%

  • Cargo volumes saw strong growth of 15% YoY. Port revenue grew by 33% YoY.

  • BofA says logistics business is expected to continue it growth on the back of improved ultization of assest.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.

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WRITTEN BY
Anjali Rai
Anjali Rai covers stock markets and business news at NDTV Profit. She holds... more
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