Adani Ports has surged after Jefferies and Citi bet on the stock. Jefferies has maintained a buy rating on Adani Ports with a target price of Rs 910.
According to Jefferies, the stock has underperformed the Nifty by 14 percent.
The debt to equity ratio of Adani Ports has fallen from 3.5 times to less than 2 times in the last five years and the management has been walking the talk in terms of deleveraging as well as reducing the promoter pledge.
In the past, these kinds of instances have been buying opportunities.
Citigroup has opened a 30-day positive catalyst on the stock on the back of expectations of strong Q1FY22 earnings.
According to Citi's note, the key to watch will be an upgrade in the FY22 volume guidance. If that comes through, there will be further rerating on the stock.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah explaining the key highlights of the brokerage note.