Adani Ports shares in focus: Adani Ports stock rose 0.46 per cent to Rs 846.30 against the previous close of Rs 842.35 on BSE. The share has gained 13.22 per cent in a year and gained 15.49 per cent in 2022.
After financial brokerage firm Nomura issued a buy recommendation to the Adani Group company with a maintained target price of Rs 1,025, attention was drawn to the shares of Adani Ports and Special Economic Zone today.
The target price results in a 22% increase in the price of Adani Ports’ stock. Compared to its previous BSE close of Rs. 842.35,
Adani Ports stock increased 0.46 percent to Rs. 846.30. The share has increased 13.22% in a year and will increase 15.49% in 2022.
Market cap of Adani Ports stood at Rs 1.78 lakh crore. Total 0.63 lakh shares of the firm changed hands amounting to a turnover of Rs 5.30 crore on BSE.
Nomura said the Adani Group firm is into an integrated logistics play and port volumes are trending above guidance.
The company may be requiring Rs 23,000 crore in capex over FY23-25, leading to a capex-intensive phase but concerns on group leverage are overdone, Nomura said in its latest note on Adani Ports.
Nomura said Adani Ports was adequately de-linked from Group companies’ operational and stock performance due to improved governance.
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“With limited exposure to Group companies, we view ADSEZ as well insulated from Group performance. Further, over FY16-22 Adani entities’ cash flows have improved, and adequately cover interest expenses, and relative leverage levels (net debt/EBITDA) has dropped.
Additionally, individual entities have also witnessed a lowering of share pledges, leading to adequate headroom to refinance maturing debt and less of a need to pledge ADSEZ shares in a major manner,” Nomura mentioned in the note.
