Adani Ports Shares Upbeat After Q1-Beat: Here's What Global Analysts Want You To Do

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.

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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