Adani Ports Eyes Expansion With Capex On Multimodal Infrastructure
The company is one of the top gainers of the Nifty High Beta 50 index.
Adani Ports and Special Economic Zone Ltd. has set a capital expenditure target of Rs 4,500–5,000 crore for fiscal 2024.
It also targets to lower its net debt-to-Ebitda ratio from 3.1 times in FY23 to 2.5 times during the current fiscal, according to its Q1 investor presentation.
Adani Ports is one of the top five gainers for the Nifty High Beta 50 index, and has the third highest one-year beta of 1.31 in the Nifty 100 list. The stock has outperformed the Nifty 50 from a six-month stock performance perspective, at 44.04% vs 8.43%.
The company plans to expand its warehousing capacity by 37.5 times, its rail track distance by 3 times, and its grain silo capacity by 2 times.
How Has The Growth Been?
Adani Ports Q1 FY24 Results (Consolidated, YoY)
Revenue rose 24% to Rs 6,248 crore, as compared with an estimate of Rs 5,941 crore.
Ebitda grew 80% to Rs 3,765 crore, against a forecast of Rs 3,530.5 crore.
Ebitda margin stood at 60.3% versus 41.3% a year earlier. Analysts had estimated it at 59.4%.
The company's cargo volume was up 12% YoY at 101.37 MMT as compared with 90.89 MMT a year ago. Container volume also rose 17% YoY to 2.48 million twenty-foot equivalent units vs 2.12 million TEU a year ago.
The five-year revenue and net profit CAGR for the company stood at 12.99% and 7.65%, respectively.
Financials
The five-year compound annual growth rate rise in the company's overall debt level is 18.74%, with debt obligations increasing year-on-year. Long-term borrowings increased 17.2% year-on-year in fiscal 2023 and historically has accounted for 90% of the debt mix. The company's historical average interest margin is 5.83%.
Its total debt stands at Rs 48,787 crore, as of June 2023.
Adani Ports has seen its reserves rise on a compounded average growth rate of 17.03% in five years. Reserves grew 8.7% in FY23 and 37.8% in FY22.
The net cash generated from operations stood at Rs 11,933 crore for the financial year ending March 2023.
According to management, the company's cash position as of Q1 FY24 was Rs 3,527.83 crore on a standalone basis and Rs 9,800 crore on a consolidated basis.
Stock Performance
The company has a one-year beta of 1.31 and has gained 44.04% in the last six months.
Shares of the company rose 3.50% to Rs 838 apiece, as compared with a 0.23% decline in the Nifty 50, as of 03:03 p.m.
Out of the 20 analysts tracking the stock, all recommend a 'buy' and the consensus price estimate indicates a 10.9% upside over the next 12 months, according to Bloomberg.
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