Shares of Adani Ports and Special Economic Zone shot up on Thursday, following a number of positive developments for the firm, including a fundraise, a target price hike from analysts and a favourable decision from the Supreme Court in the Hindenburg case.
What Happened: HSBC has upwardly revised the stock’s target price to ₹1,250 after the Supreme Court dismissed petitions related to the Hindenburg case against Adani, rejecting conflict of interest claims and recommending a SEBI probe into Hindenburg’s short-selling allegations.
HSBC noted that Adani Ports might be more open to inorganic opportunities and balance sheet gearing in the future.
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For FY2023-26E, HSBC analysts anticipate a 17% compound annual growth rate in the company’s EBITDA, with return on invested capital expected to rise to 17% in FY26 from 13% in FY23.
In a separate regulatory filing on Thursday, Adani Ports announced board approval to raise funds of up to ₹5,000 crore through non-convertible debentures in one or more tranches.
Additionally, the board approved the re-designation of billionaire Gautam Adani as executive chairman and Karan Adani as managing director, effective from January 4. Ashwani Gupta has also been approved for the position of CEO and whole-time director for a duration of three years.
Price Action: Adani Ports’ share price was up 1.17% at ₹1,107.00 near the start of trade on Thursday.
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