The share price of this Adani Group company was up by 2.94 percent from a day’s low to an intraday high on Tuesday after reporting a net profit increase of 36.94 percent.
Share Price Movement
In Tuesday’s trading session, Adani Ports share price was up by 2.94 percent from the day’s low to touching the day’s high of Rs. 1,364.70. The stock was trading at Rs.1,358.45 per share and was up 0.48 percent from the previous close of Rs.1,352.20 per share. In the past year, the stock has given around 73.09 percent returns.
Q2FY25 Results update
The initial stock surge was driven by the good results in revenue and net profits reported by Adani Ports & SEZ Ltd for the recent quarter.
In its latest filing for the quarter ending September 2024, the company announced a 6.32 percent rise in revenue, reaching Rs.7,067.02 crore compared to Rs.1,761.63 crore in Q2 FY24. On a quarter-over-quarter basis, the operational revenue was up by 1.59 percent from Rs.6,956.32 crore in Q1FY25.
During the same period, net profit increased by 36.94 percent to Rs.2,412.54 crore in Q2 FY25, compared to Rs.1,761.63 crore in Q2 FY24, and down by 22.35 percent from Rs.3,107.23 crore in Q1 FY25.
Regarding return ratios, the return on capital employed (ROCE) currently stands at around 12.9 percent, whereas the return on equity (ROE) is at 18.1 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 29.2. The company also has a current ratio of 1.02 and a debt-to-equity ratio of 0.94 times.
The company earned the majority of its revenues from Ports & SEZ activities which contributed around 90.43 percent and others contributed 9.56 percent in Q2FY25. There was growth in the Ports segment. The profits of the Ports segment have grown 12 percent year on year.
APSEZ’s cargo volume for FY25 is projected between 460 to 480 MMT. Along with the volume, EBITDA guidance is projected between Rs. 17,000 crore to 18,000 crore.
Earlier, Brokerage firm Motilal Oswal gave a buy rating of Rs. 1,850 on the stock, which has a potential upside of 37%.
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Management Commentary
Ashwani Gupta, the whole-time director & CEO of Adani Ports & SEZ said they are witnessing continuous growth in the operations with existing ports delivering strong volume ramp-ups and new capacity additions progressing as planned in Vizhinjam, Gopalpur, and Colombo. The company has diversified into marine fleet by adding 26 offshore support
vessels. APSEZ’s logistics business expanded and improving on last-mile connectivity. Mundra Port surpassed 100 MMT in 181 days, reinforcing confidence in achieving FY25 cargo and EBITDA guidance and positioned to touch the upper limit of the guidance while continuing sustainable growth.
Company Profile
Adani Ports and Special Economic Zone Limited (APSEZ) is India’s largest private port operator. They manage a network of 13 ports across states like Maharashtra, Gujarat, and Tamil Nadu, and others. The company accounts for nearly 24% of the country’s port capacity, facilitating cargo movement. APSEZ integrates logistics services through its subsidiary, Adani Logistics which enhances operational efficiency. The flagship Mundra Port serves as a major hub, while the Mundra SEZ offers diverse investment opportunities.
Written by – Santhosh S
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