Research house Citi has maintained neutral call due to past incidences of less-than-optimal capital allocation. It has kept a target of Rs 417 per share.
Shares of Adani Ports and Special Economic Zone gained 3.6 percent in the early trade on May 28 after the company posted strong numbers for the quarter ended March 2019.
Adani Ports' Q4FY19 net profit rose 38.7 percent at Rs 1,285.4 crore, while revenue was down 3.2 percent at Rs 3,082.5 crore.
Its operating profit or EBITDA was up 19.2 percent at Rs 2,040 crore and margin was up at 66.2 percent.
Research house Citi has maintained a neutral call due to past incidences of less-than-optimal capital allocation. It has kept a target of Rs 417 per share.
According to Citi, there has been an increase in consolidated net debt in FY19.
The company sees revenue & EBITDA growth of 12-14 percent and 14-16 percent, respectively in FY20 and guides for SEZ port development income of Rs 800 crore for FY20, it added.
CLSA has maintained buy call on Adani Ports with a target at Rs 475 per share.
The overall Q4 volume was up 18 percent versus major ports at 5 percent, led by a rebound in coal and container volume.
Its port EBITDA grew 14 percent, despite a one-off incentive payment, while margin fell 487 bps due to mix.
The company aims to review its pay-out policy next week, key to sustaining its high RoE. The strategic asset should deliver 16 percent growth in port EBITDA over FY19-21, it said.
At 0927 hours, Adani Ports and Special Economic Zone was quoting at Rs 424.95, up Rs 12.40, or 3.01 percent on the BSE.
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