On BSE, Adani Ports shares rose by ₹10.20 or 1.09% to settle at ₹948.85 apiece. The shares have clocked a new historic high of ₹953.80 apiece in trading hours - resulting in at least a 1.6% rise on Tuesday compared to the previous closing.
The company's market valuation is around ₹2,00,432.53 crore at the closing price.
So far in September month, Adani Ports shares have climbed by over 13.25% on Dalal Street.
Earlier this month, Adani Ports announced its operational performance for August 2022.
In August 2022, the company handled 29.3 MMT of cargo implying an 18% yoy rise. In the month, dry bulk volume grew by 44% and containers by 8%. Further, Adani Ports highlighted that in a record 49 days, the Company achieved a cargo throughput of 50 MMT (YTD cargo volume increasing from 100 MMT to 150 MMT).
In the first five months of FY23, Adani Ports managed 151.4 MMT of cargo, which is an 11% increase over the corresponding period last year, that benefitted from post COVID volume surge.
Notably, Adani Ports registered the highest ever quarterly cargo volumes in Q1FY23. During the quarter, the company handled 90.89 MMT of cargo (including 9.09 MMT at Gangavaram Port), which is ~8% Y-o-Y growth.
Adani Ports is a multi bagger stock
In a year, this Adani shares have climbed by more than 27%. The shares were below ₹745 apiece on September 13 last year.
Meanwhile, in a span of two years, Adani Ports have emerged as a multibagger with gains of nearly 177% of 2.7 folds. The shares was around ₹342 apiece level on September 11, 2020. That said, investors wealth in Adani Ports have nearly tripled in 2 years.
Adani Ports is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha presents the most widespread national footprint with deepened hinterland connectivity.
The company's port facilities are equipped with the latest cargo-handling infrastructure which is not only best-in-class, but also capable of handling the largest vessels calling at Indian shores. Its ports are equipped to handle diverse cargos, from dry cargo, liquid cargo, crude to containers.
Adani Ports outlook
During the first quarter of FY23 (April - June 2022), Adani Ports registered a 16.09% drop in consolidated net profit to ₹1,072.38 crore compared to ₹1,277.99 crore in the same period last year. Meanwhile, consolidated revenue from operations climbed by 20.62% to ₹4,637.95 crore in Q1FY23 versus ₹3,845.03 crore in Q1FY22.
Last month, post the Q1 review report for Adani Ports earnings, Ashish Shah Research Analyst, and Vaibhav Shah Research Associate of Centrum said, "APSEZ has guided for 12-15% growth in cargo to 350-360mt in FY23 (312mt in FY22). Consolidated revenue/EBITDA guidance is Rs192-198bn/Rs122-126bn. Recovery in the import of thermal coal volumes is one of the key catalyst for FY23 volume guidance. Besides APSEZ’s persistent cargo diversification efforts should aid incremental volumes in containers (@ Gangavaram), LNG at Dhamra, and more dry and liquid cargo at key ports. New tie-ups should help container cargo recovery at Krishnapatnam."
Further, the Centrum's note said, "APSEZ has set a target for itself to become an Integrated Transport Utility providing end to-end solutions with a targeted cargo handling of 500mt by FY25. Recent acquisition of Haifa Port in Israel and its upcoming container terminal in Sri Lanka is a part of its global expansion strategy. Domestically, APSEZ wants to consolidate its presence at existing locations by adding new cargo streams and focused capacity expansions on non-coal cargoes. Rail and Agri logistics businesses are being scaled up ~3x from FY22 levels and APSEZ targets 60m sqft of Grade warehousing capacity by FY25 (0.8m sqft inFY22)."
"APSEZ ambitious CAPEX plans are supported by its strong cash flows, though the surge in intensity over next three 3 years should restrict ROCE expansion. Higher share of sticky cargo (@49% in FY22) cushions against disruptions and makes APSEZ’s asset portfolio resilient," the report added.
