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Adani Ports shares gain over 3% after mixed Q1 earnings

Adani Ports shares gain over 3% after mixed Q1 earnings

Adani Ports shares gain over 3% after mixed Q1 earnings
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By Ankit Gohel  Aug 12, 2020 11:07:35 AM IST (Published)

The share price of Adani Ports & Special Economic Zone gained more than 3 percent in the early trade on Wednesday as brokerages remained bullish on the stock.

The share price of Adani Ports & Special Economic Zone gained more than 3 percent in the early trade on Wednesday as brokerages remained bullish on the stock after its mixed set of numbers for the June quarter.

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The stock, however, pared gains slightly, trading 2.70 percent higher at Rs 343.90 per share, at 11:03 am.
In Q1FY21, the company reported a 26.2 percent fall in consolidated profit at Rs 757.8 crore as against Rs 1,028.7 crore in the year-ago period.
Consolidated revenue from operations fell 18 percent to Rs 2,292.7 crore from Rs 2,794.5 crore, YoY as cargo throughput dropped.
EBITDA fell 24.5 percent to Rs 1,394.2 crore from Rs 1,846.4 crore and EBITDA margin decreased by 530 bps to 60.8 percent from 66.1 percent, YoY.
While it gained 94 bps share in containers to 39 percent for India, it lost overall share as its volume dipped 27 percent versus major ports being down 19 percent. Volume was supported by container and gas, while coal declined sharper on COVID-19-led domestic demand destruction, said CLSA.
Management said that its July volume surprised with 6 percent YoY growth, but it remains to be seen if it is pent-up demand driven due to a weak Q1 or is this sustainable.
CLSA maintained an 'Outperform' rating with a target price of Rs 386 per share as it believes this strategic asset will deliver 29 percent growth in port Ebitda over FY20-23CL.
Citi believes that the company’s volume resilience and pricing power shined through in Q1 and the market share gains are visible. The Q1 results underline the company’s strong competitive position and pricing power.
It maintained a 'Buy' rating with a target of Rs 402.
The Q1 would be remembered as revealing quarter that established increasing relevance of company, Kotak Institutional Equities said.
The company was able to take a usual price increase in key cargo classes, while able to meaningfully alter cost structure to maintain port margin despite volume decline, it added.
Kotak Institutional Equities maintained 'Buy' call and a target of Rs 400.
 
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