Adani Ports - Steady Sail - Emkay

- Visibility on cargo volumes remains intact, contracted/container cargo volumes CAGR of 15%/23% over FY13-15E, driving total volume CAGR of 16.5% over FY13-15E

- Newer assets to turn Earnings accretive (Dahej, Hazira, CTIII), earnings contribution to surge higher from 6.9% in FY13 to 10.9%/14.6% in FY14E/15E. Possible PSA/strategic tie -ups to help earnings

- Abbot divestment and completion of big -ticket capex to propel APSEZ into a high FCF zone in the next 2 years (FY13-15E)

- Best-in-class core asset, earnings accretion from newer ports to help garner earnings CAGR of 18.7% from FY13-15E. Remains our top-pick in the infra space for stable returns. Maintain Buy, TP Rs170

Source : Equity Bulls

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