Adani Ports & Special Economic Zone Ltd. share price target

Revenue rose by 1.03% to Rs. 2231.46 Cr in Q4FY17 when compared to the previous quarter.

We attended the earnings meet of Adani Ports & SEZ (APSEZ) and got an opportunity to interact with the top management and get an insight into its business and future plans. APSEZ is one of India's biggest private sector port infrastructure company. Over the past two decades, APSEZ has built, acquired and developed an unparalleled portfolio of ports infrastructure and services across India. The ports business includes 10 strategically located ports and terminals around the Indian coastline, representing 24% of the country's port capacity. APSEZ also provides...

We roll forward our TP to FY19E and have a BUY rating with TP of Rs 396. Our SOTP based TP implies EV/EBITDA of 12.5x FY19E, which we believe is reasonable for a company with RoCE of 16% at just 55% utilization and EBITDA growth of ~15% pa.

Port EBITDA of ~Rs 12 bn (up 25% YoY) was driven by 8% YoY volume growth at 41 MT. Cargo at flagship Mundra port grew ~7% YoY (driven by containers). Profitability surprised positively rising 15% YoY to Rs 300/t. Results were boosted by SEZ income of Rs 2 bn.

Revenue rose by 2.34% to Rs. 2226.62 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 31.62% when compared with Q3FY16

Adani Ports & SEZ (APSEZ) began commercial operations in October 2001, post entering into concession agreement with GMB to build, operate and maintain the port for a period of 30 years till 2031 extendable by another 20 years. The port is into providing cargo handling services for bulk, crude and container cargo. The company has also received approval to develop the adjacent port land as a multiproduct SEZ. The company is the first port in India to handle one million TEU...

We attended an analyst visit to Dhamra port arranged by Adani Ports (ADSEZ) and came away extremely impressed by the waterfront/ cargo handling/ rail evacuation infrastructure.Management expects 30% volume growth to sustain driven by inbound cargo and outbound cargo .

Adani Ports & SEZ (APSEZ) began commercial operations in October 2001, post entering into concession agreement with GMB to build, operate and maintain the port for a period of 30 years till 2031 extendable by another 20 years. The port is into providing cargo handling services for bulk, crude and container cargo. The company has also received approval to develop the adjacent port land as a multiproduct SEZ. The company is the first port in India to handle one million TEU...

Background: Adani Ports & SEZ (APSEZ) began commercial operations in October 2001, post entering into concession agreement with GMB to build, operate and maintain the port for a period of 30 years till 2031 extendable by another 20 years. The port is into providing cargo handling services for bulk, crude and container cargo. The company has also received approval to develop the adjacent port land as a multiproduct SEZ. Notification has been issued to ~16,000 acres of land while the company is in talks to acquire more land to add to its SEZ portfolio. Since inception, APSEZ has posted 31% CAGR in last 3 years and handled ~144 MT cargo in FY15,...