Adani Ports and Special Economic Zone share seems to be performing well as it moved up in the early trade today, touching a 52-week high of Rs 467.90. The jump in stock prices was seen after the brokerages increased the target price of the share.
CLSA, a research house, suggested a buy, raising EPS 12 per cent over FY22-23CL and enhancing target price to Rs 540 from Rs 425, reported moneycontrol.com. The EPS has been raised to factor-in a rebound in volume.
Jefferies has also increased the target price to Rs 525 per share from Rs 475, advising a ‘hold’ stance on the stock. The brokerage took into consideration the management focus showcased by the company to improve Krishnapatnam Port’s margins. According to cnbctv18.com, Jefferies also observed that continuing improvement in operations and reduction in promoter pledges may drive further re-rating from current levels.
Nomura has also revised the target price to Rs 530 per share. It has raised EBIDTA estimates by three or four per cent over FY21-23 in view of the strong operation turnaround. It said that the turnaround of KPCL had been faster than its expectations. Nomura asserted that the overall volume outlook looks strong because of continuing momentum in third quarter of this fiscal.
Last week, the company’s stock reach 52-week high mark following rise in cargo volume, registering a growth of 10 per cent on year on year basis. The share price moved up over two per cent intraday on December 2, reaching Rs 435.10.
In the previous month, Adani Ports managed cargo volume of 24 mmt, including three mmt handled at Krishnapatnam Port.
The company announced that its consolidated profit for the second quarter went up 31.57 per cent, amounting to Rs 1,393.69 crore. Moreover, its total consolidated income increased to Rs 3,423.16 crore for the quarter ended on September 30, reported moneycontrol.com. In the year-ago period, Adani Ports reported that its total consolidated income stood at Rs 3,326.90 crore.