Buy Adani Ports & Special Economic Zone, target Rs 480: Phillip Capital (India)

Phillip Capital (India) has a buy call on Adani Ports & Special Economic Zone Ltd. with a target price of Rs 480.0 . The current market price of Adani Ports & Special Economic Zone Ltd. is Rs 406.9 Time period given by the brokerage is a year when Adani Ports & Special Economic Zone Ltd. price can reach defined target.

Adani Ports & Special Economic Zone Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 84536.25 Crore) operating in Miscellaneous sector.

Investment Rationale by PhilipCapitalADSEZ reported lacklustre 4QFY18 results, with muted cargo growth, and revenue boosted by exceptional SEZ income. Overall FY18 was a forgettable year for the company, with cargo impacted by external factors (HPCL refinery, Adani Power etc) – but the outlook remains bright. Container cargo continues to grow strongly across all ports, and inclusion of new ports (Ennore in FY19, Vizhinjam in FY20) will ensure healthy double digit cargo growth, over the next few years. We expect strong cashflows in FY19 and beyond, with capex peaking out and operations stabilizing across assets. We view the current price as an excellent opportunity to own a superior cash-generating asset portfolio. Maintain BUY.