Reduce Adani Ports, target Rs 234 : Nomura, India

Nomura, India has Reduce call on Adani Ports & Special Economic Zone Ltd. with a target price of Rs 234 .The current market price of Adani Ports & Special Economic Zone Ltd. is 264.4 Time period given by analyst is year when Adani Ports & Special Economic Zone Ltd. price can reach defined target.
Nomura sees Adani Ports' near-term volumes impacted by weak EXIM trade outlook + already weak FCF outlook and believes volume growth momentum in 1HFY17 is likely to weaken due to demonetisation. The company has lowered India container trade volume growth estimate for FY18F to 7.5% from 8.5%. Significant capex pipeline likely to keep FCF depressed even if related party exposure declines.
The stock is trading at 12.7x EV/EBITDA; Nomura prefers Concor in this space