IDFC Securities maintains outperformer on Adani Ports and SEZ, target price Rs 466

IDFC Securities has maintained outperformer rating on Adani Ports and Special Economic Zone in the long term with a target price of Rs 466. Shares of Adani Ports ended down 0.2% at Rs 382.70 on Friday while BSE Sensex closed 162.03 points up at 41,464.61.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2821.16 crore, up .96% from last quarter sales of Rs 2794.47 crore and up 8.17% from last year same quarter sales of Rs 2608.01 crore. The company has reported net profit after tax of Rs 1059.19 crore in the latest quarter.


The company’s top management includes Dr.Malay Mahadevia, Mr.G K Pillai, Mr.Gautam S Adani, Mr.Karan G Adani, Mr.Rajesh S Adani, Mr.Sanjay Lalbhai, Ms.Radhika Haribhakti, Prof.G Raghuram. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2019, the company has a total of 2,031,751,761 shares outstanding.

Investment Rationale

The company has entered into an agreement to acquire 75% stake in Krishnapatnam Port which is in line with the company's strategy to grow its port volume through organically/inorganically. The acquisition is valued at 8.6 times FY21 EV/Ebitda considering Adani Ports getting presence in AP and scaling up of the new port to 100 mtpa (FY20-25).