Shares of Adani Ports bounced back in early trade on Wednesday as analysts across the board maintained their positive outlook on the stock.
What Happened: The Adani Group company’s consolidated net profits for the April-June period came in at 2,114.7 crore almost double the ₹1,177 crore profit it booked in the same period last year. The company’s revenue from operations came in at ₹6,247.6 crore, up 23.5% from the ₹5,058 crore in the same quarter last year.
EBITDA for the quarter stood at ₹3,766 crore, with a margin of around 60%. Earnings per share for the quarter came in at ₹9.8. The company guided revenue for the period to be at ₹24,000-₹25,000 crore, and EBITDA for the period to be ₹14,500-₹15,000 crore. The company expects net debt to EBITDA to be reduced to ~2.5x, it was at 3.1x.
Analyst Reactions: Berstein maintained its ‘buy’ rating for the stock with a price target of ₹888. The research firm said that the ports giants’ strong guidance on balance sheet strengthening was a good sign. The firm added that the company had a strong quarter, especially on the volume and EBITDA front.
CLSA also maintained its ‘buy’ rating on the stock with a price target of ₹878. Citi also maintained the ‘buy’ rating on the stock with a price target of ₹972. The target indicates an over 22% upside from the stock’s last closing price of ₹791.40.
Jefferies also maintained its ‘buy’ rating on the stock raising the target price to ₹890 from ₹855. The research firm said that the company’s June quarter revenue was lower than expected. The firm added that the company’s margins should improve as acquired ports get operationally efficient.
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Price Action: Adani Ports’ share price was up 0.66% to trade at ₹789.40 as the markets opened on Wednesday.
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