Adani Ports Shares Rally Over 7% Today, As Q3 Results, Loan Prepayment Boost Recovery

Shares of Adani Ports and Special Economic Zone were up over 36% from last Thursday to trade at ₹595.80 in the late hours of trading on Wednesday.

What Happened: Shares of the company were taking a serious beating at the bourses after the release of the Hindenburg report last month. The company's stock fell around 40% since the U.S.-based short seller released the report on Feb. 24.

Now on the back of loan prepayment and a decent performance in Q3, the stock is showing signs of recovery. 

Earlier this week, Adani Group prepaid ₹9,200 crore worth of loans to free up pledged promoter shares of its companies including Adani Ports & Special Economic Zone.

The repayment saw the release of 168.27 million pledged shares of Adani Ports & Special Economic Zone held by promoters.

This was followed by the company's CEO and son of Gautam Adani, Karan Adani announcing that the company looks to repay ₹5,000 crore in debt by FY2024 to improve the company's net debt to EBITDA ratio and bring it closer to 2.5x.

The company also posted its Q3FY23 results on Tuesday which saw the company's revenue from operations rise 17.54% year-over-year to ₹4,786.17 crore.

However, the company's profits took a 16.15% YoY hit at ₹1,315.5 crore.

The company's  EBITDA (earnings before interest, tax, depreciation, and amortisation) stood at ₹3,011 crore this quarter, up 15% from ₹2,612 crore it reported in the year-ago period. 

Going forward the company estimates booking revenue of ₹19,200 -19,800 crore for FY23 with an EBIDTA  of ₹12,200-12,600 crore.

Price Action: Shares of Adani Ports and Special Economic Zone jumped over 8% to reach Wednesday's intraday high of ₹602. 

Posted In: Adani Groupadani ports & sezGautam AdaniHindenburg Research