Shares of Adani Ports and Special Economic Zone rose 3 percent on Wednesday after the company reported an improvement in operational performance in May.
In a BSE filing, the company said that its handled cargo volume for May stood at 25.65 MMT, up 79 percent on a year-on-year basis. In the container segment, the company registered a rise of 67 percent in handled volume at 0.72 MN TEU’s in May.
The stock rose as much as 3.2 percent to its day's high of Rs 824 per share.
Mundra port handled container volume of 0.56 MN TEU’s which is up 61 percent YoY, the filing added.
For the March quarter, the firm's profit surged 285 percent year-on-year to Rs 1,287.81 crore versus Rs 334 crore in the year-ago period.
Its revenue from operations during the quarter grew by 23.5 percent YoY to Rs 3,608 crore compared to Rs 2,921 crore year on year. This was led by a 27 percent growth in cargo volume and a 30 percent rise in port revenue.
Consolidated operating EBITDA advanced 39 percent to Rs 2,287 crore.
However, Jefferies said the Q4FY21 EBITDA was below expectations given lower margins. The EBITDA should recover as volume rises and April 2021 price hikes reflect, Jefferies said. The brokerage maintained a Buy rating and raised the target price to Rs 910 per share from Rs 670 earlier.
Citi also maintained a buy call and raised the target price to Rs 1,000 per share as it is of the view that the company is strengthening its pole position.