Adani Ports gains 3%; CLSA maintains buy with target Rs 505


Shares of Adani Ports and Special Economic Zone rose 3 percent intraday Friday. The company has reported 20 percent year-on-year fall in its fourth quarter profit at Rs 929 crore despite higher revenue from operations.

Meanwhile, revenue of the company rose 42 percent at Rs 3182.86 crore against Rs 2231.46 crore.

The operating profit or EBITDA of the company rose 4.6 percent at Rs 1712.61 crore, while margin shed 20 bps at 53.8 percent.

The board has recommended 100 percent (Rs 2) dividend per equity shares of Rs 2 each for the financial year 2017-18.

CLSA has maintained buy rating on Adani Ports with a target of Rs 505 per share.

The company guided for 200 mt, up 11% cargo in FY19 and free-cash-flow to grow 50% YoY. The company bagged 2 clients with potential land sales in CONCOR, while Britannia was a pleasant surprise, it added.

Brokerage: Deutsche Bank | Rating: Hold | Target: Rs 350

Deuteche Bank maintained hold rating with target of Rs 350 per share. The company disappointed on lower volume & forex loss in Q4FY18.

The company saw muted EPS growth in FY18-20 due to normalisation of SEZ revenue booking and expect 9% CAGR in port volume in FY18-20 driven by market share gains.

Brokerage: Macquarie | Rating: Neutral | Target: Rs 388

Macquarie has maintained neutral call on the stock with a target of Rs 388 per share.

The earnings were below expectation on lower volume growth & SEZ income. Meanwhile, increase in dividend payout ratio is not meaningful.

At 13:52 hrs Adani Ports and Special Economic Zone was quoting at Rs 407.25, up Rs 10.45, or 2.63 percent on the BSE.moneycontrol