Shares of Adani Ports and Special Economic Zone Ltd. hit a record high after profit surged in the third quarter in line with analysts' estimates.
India's largest private port operator's net profit rose 65.22% year-on-year to Rs 2,208.21 crore in the quarter ended December, according to an exchange filing. That compares with Bloomberg poll of analysts' estimate of Rs 2,193.6 crore.
Consolidated revenue rose 44.6% to Rs 6,920.1 crore, exceeding estimates of 6,892.7 crore.
Adani Ports Q3 FY24 Highlights (Consolidated, YoY)
Revenue rose 44.6% to Rs 6,920.1 crore. (Bloomberg estimate: Rs 6,892.7 crore).
Ebitda rose 59.21% to Rs 4,185.9 crore. (Bloomberg estimate: Rs 4,052.9 crore).
Ebitda margin down 242 bps stood at 60.40%. (Bloomberg estimate: 58.80%).
Net profit up 65.22% at Rs 2,208.21 crore.
Operationally, Adani Ports is continuing to move from strength to strength, with market share moving up to 26% from 14% in FY15 and expected to be 30%+ by FY25E, according to Jefferies.
As core port Ebitda growth remains upward of double digits, backed by volumes, Jefferies remain positive on the stock.
Logistics was 8% of the company's revenues and 3% of Ebitda in third quarter, and growing this area is a focus. Plan is to nearly triple rake capacity to 300+ by FY28E and cater to both bulk and container, Jefferies said Feb. 1 note.
According to Motilal Oswal Financial Services, the company has a diversified cargo mix along with sticky cargo and customer base. The operational ramp-up at the recently acquired ports is expected to drive a 14% growth in cargo volumes over FY23-26.
"This would drive a revenue/EbitdaA/PAT CAGR of 19% over FY23-26", the research firm said.
Shares of Adani Ports jumped as much as 5.63%, the biggest single-day rise since Jan 3. The scrip is trading 4.89% higher at Rs 1,278.50, compared to the 1.08% advance in Nifty 50.
The total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 72, indicating the stock may be overbought.
Of the 21 analysts tracking the company, 19 maintain a 'buy' rating and two recommend a 'hold,' according to Bloomberg data. The average of 12-month analyst price targets implies an upside of 1.2%.
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