Adani Ports' stock rises by 3%, hitting a new high

12 Sept 2022 , 02:01 PM

In intraday trading on Monday, shares of Adani Ports Special Economic Zone (APSEZ) reached a record high of Rs934, up 3% on the BSE. On the strength of a better business outlook and good results in the current fiscal year's June quarter, the stock has increased 10% in the last week and 19% in the past month (Q1FY23). The S&P BSE Sensex, in contrast, gained 1% throughout the month.

With a record cargo volume and the greatest quarterly EBITDA ever, Q1FY23 was the best quarter in APSEZ's history. On the strength of revenue growth for the ports and logistics division, the firm recorded a record EBITDA of Rs3,005 crore, up 11% year over year (YoY).

The management said that the firm maintained its impressive performance in July and accomplished a first by moving 100 MMT of freight through-put in the first 99 days of FY23. Given the Rs725 crore reduction in income from the SEZ business sector, the company's consolidated revenue (excluding Gangavaram) was, according to the statement, nearly flat YoY at Rs4,638 crore.

One of the main drivers of the volume forecast for FY23 is the increase in thermal coal import volumes. In addition, APSEZ's ongoing cargo diversification activities should support rising container volumes, LNG at Dhamra, and increased dry and liquid cargo at important ports. According to the brokerage business, new partnerships should aid in Krishnapatnam's container shipping recovery. But the stock is trading above its Rs920 per share target price.

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