Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Q4 FY18 Result Update: Adani Port and SEZ - BUY - TP Rs.485 - Kotak

Posted On: 2018-05-05 08:28:05

APZ reported a healthy quarter in terms of port volumes (+7% in FY18), adjusted port revenues (+32% YoY) with healthy EBIDTA margin. It also gave comfort with good free-cash flow generation of Rs 12.5 bn in FY18 and on its usage for debt repayments as well as dividend payout. Rebound in coal volumes and outperformance in both container and bulk segments should accelerate market share gains for APZ.

Key Highlights

- APZ has once again delivered volume outperformance versus major ports in both total cargo and containers. The performance has been well complemented by all the subsidiary ports including one in Australia. Strong growth was witnessed in container, coal and crude lead to 6% overall cargo growth in 3QFY18 (+7% in FY18), in line with our estimate of 7%.

- A combination of volume outperformance, higher-than-expected port-development income and contribution from Australian operations led to strong revenue of Rs 31.83 bn (+42.6% YoY and 18.4% QoQ), EBIDTA margin of 60.7% and recurring PAT of Rs 12.11 bn (+26% YoY) 16% ahead of estimates.

- The management targets 1.5x accelerated total cargo growth and 2x container volume growth 2X versus major ports. In order to achieve the growth objective, the company is expanding operations at several locations. The company targets Rs 20-22 bn of capex across all its subsidiary ports and diversification across product segments.

- The company expects FCF to further improve on a conservative basis FY19 allowing proportionately higher dividend payout (company targets 15% payout).

- With deleveraging efforts, the company expects net debt/EBITDA and interest cost to reduce.

Valuation and recommendation

- We believe that the company has diversified its offering product wise and geographically, making efforts to enhance non-port revenues, making operations more integrated, taking measures to bring down cost of debt and other cost and have made related party transactions completely nil. We estimate the benefits of these efforts to have already started accruing to APZ and would continue to accrue in future as well. We estimate the consolidated entity to report volume CAGR of 11% over FY18 to FY20E with the new ports of Dhamra, Hazira, Dahej, Kattupalli and the container volume at Mundra contributing the maximum.

- Our TP is based on SOTP valuation with a weighted average cost of capital (WACC) of 12.0% and book values for other investments. Maintain BUY with an unchanged TP of Rs 485.

Shares of ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD. was last trading in BSE at Rs.408.2 as compared to the previous close of Rs. 396.8. The total number of shares traded during the day was 295866 in over 3430 trades.

The stock hit an intraday high of Rs. 409.85 and intraday low of 391.9. The net turnover during the day was Rs. 119930662.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Karia Can Company Ltd Q1FY19 net profit slips to Rs. 1.88 crore

Result Update: Bajaj Electricals Ltd - SELL - TP Rs.545 - Kotak

Result Update: Gabriel India Ltd - BUY - TP Rs.185 - Kotak

Result Update: Blue Star Ltd - ACCUMULATE - TP Rs.743 - Kotak

Result Update: The Phoenix Mills Ltd - ACCUMULATE - TP Rs.707 - Kotak

Result Update: NMDC Ltd - BUY - TP Rs.125 - Kotak

Result Update: National Aluminium Company Ltd - BUY - TP Rs.100 - Kotak

Result Update: PNC Infratech Ltd - BUY - TP Rs.219 - Kotak

Result Update: Insecticides India Ltd - BUY - TP Rs.892 - Kotak

Result Update: Mirza International Ltd - BUY - TP Rs.120 - Kotak

Wonderla Holidays Ltd - Kotak

Result Update: Greenply Industries Ltd - BUY - TP Rs.286 - Kotak

Result Update: Praj Industries Ltd - ACCUMULATE - TP Rs.89 - Kotak

Cholamandalam Investment & Finance Co. Ltd - Outperformer - Centrum

Initial Public Offer: CreditAccess Grameen Ltd - NOT RATED - Kotak

Result Update: Adani Ports and SEZ - BUY - TP Rs.485 - Kotak

Result Update: Carborundum Universal Limited - BUY - TP Rs.420 - Kotak

Result Update: Arvind Ltd - BUY - TP Rs.500 - Kotak

Result Update: Indocount Industries Limited - BUY - TP Rs.103 - Kotak

Result Update: Mahindra & Mahindra Ltd - ACCUMULATE - TP Rs.984 - Kotak

Initiating Coverage: Essel Propack Ltd - BUY - TP Rs.140 - Kotak

Sector Update: Natural Gas Sector - Kotak

Analyst Meet Update: Hero MotoCorp Ltd - ACCUMULATE - TP Rs.3473 - Kotak

Result Update: Time Technoplast Ltd - BUY - TP Rs.195 - Kotak

Result Update: VIP Industries Ltd - ACCUMULATE - TP Rs.570 - Kotak

Result Update: Marico Ltd - ACCUMULATE - TP Rs.375 - Kotak

Result Update: Mold-Tek Packaging Ltd - BUY - TP Rs.351 - Kotak

Result Update: Central Depository Services (India) Ltd - BUY - TP Rs.320 - Kotak

Result Update: Apollo Tyres Ltd - ACCUMULATE - TP Rs.301 - Kotak

Result Update: Akzo Nobel India Ltd - BUY - TP Rs.2200 - Kotak

Result Update: Jindal Stainless (Hisar) Ltd - BUY - TP Rs.227 - Kotak

Result Update: Tata Motors Ltd - REDUCE - TP Rs.277 - Kotak

Result Update: Bharat Electonics Ltd - BUY - TP Rs.135 - Kotak

Result Update: Bluedart Express Ltd - SELL - TP Rs.3215 - Kotak

Result Update: Supreme Industries Ltd - ACCUMULATE - TP Rs.1324 - Kotak

Result Update: Gujarat State Petronet Ltd - SELL - TP Rs.182 - Kotak

Market Strategy: Monthly Outlook for August 2018 - Kotak

Auto Industry Volume Update: July 2018 - Kotak

Result Update: Genus Power Ltd - BUY - TP Rs.58 - Kotak

Result Update: Mahanagar Gas Ltd - ACCUMULATE - TP Rs.1030 - Kotak

Result Update: Castrol India Ltd - BUY - TP Rs.195 - Kotak

Result Update: Persistent Systems Ltd - BUY - TP Rs.1025 - Kotak

Q1 FY19 Result Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.373 - Kotak

Result Update: Escorts Ltd - ACCUMULATE - TP Rs.958 - Kotak

Result Update: Shree Cements Ltd - ACCUMULATE - TP Rs.18487 - Kotak

Result Update: Container Corporation of India Ltd - BUY - TP Rs.775 - Kotak

Result Update: NIIT Ltd - BUY - TP Rs.125 - Kotak

Result Update: Petronet LNG Ltd - BUY - TP Rs.267 - Kotak

Optiemus Infracom Ltd launches BlackBerry® Evolve and BlackBerry® EvolveX

Result Update: Quess Corp Ltd - BUY - TP Rs.1302 - Kotak

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018