Mehabe score: 7 G Factor: 2 Piotski Score: 7 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 7.
Description
Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra.Site:ADANIPORTSMain Symbol:ADANIPORTS
Stock trades at 746.0, above its 50dma 732.83. It also trades above its 200dma 664.64. The stock remains bullish on techicals
The 52 week high is at 901.00 and the 52week low is at 341.15
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-‘s median sales growth is 18.72% of last 10 years
Weakness
– Stock is trading at 4.95 times its book value
– might be capitalizing the interest cost
-Dividend payout has been low at 12.89% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 28.2x. Markolines Traf. trades at the industry’s max P/E of 28.94x. ADANIPORTS trades at a P/E of 27.5x
– Industry’s mean G-Factor is 1.5 while the mean Piotski score is 7.0. ADANIPORTS has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 1.8%. The max 1- month return was given by Markolines Traf.: a return of 4.13 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 4557.0 cr compared to Rs 2293.0 cr for period ended Jun 2020, a rise of 98.7%
Operating Profits reported at Rs 2231.0 cr for period ended Jun 2021 vis-vis 1394.0 for period ended Jun 2020 .
Operating Margins contracted -1183.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 6.4 compared to Rs 6.34 for previous quarter ended Mar 2021 and Rs 3.73 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14814.0 cr for period ended TTM vis-vis sales of Rs 12550.0 cr for the period ended Mar 2021, a healthy growth of 15.3%. The 3 year sales cagr stood at 10.7%.
Net Profit reported at Rs 5543.0 cr for period ended TTM vis-vis sales of Rs 4994.0 cr for the period ended Mar 2021, rising 9.9%.
Company recorded a healthy Net Profit CAGR of 11.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 7556.0 cr for period ended Mar 2021 vis-vis Rs 7402.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 18.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 105% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is 30% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is 58% vis-vis a compounded profit growth of 10% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 15.29% vis-vis 15.72% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 5.02% vis-vis 5.62% for Jun 2021
Conclusion
– is expected to give good quarter
-‘s median sales growth is 18.72% of last 10 years – Stock is trading at 4.95 times its book value
– might be capitalizing the interest cost
-Dividend payout has been low at 12.89% of profits over last 3 years
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 732.83 and is trading at 746.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
