Result Update: Adani Port and Special Economic Zone (APZ) - BUY - TP Rs.425 - Kotak

FY17 was healthy for APZ with 11.1% volume growth, sustained healthy EBIDTA margin, strong earnings growth and improvement in BS quality. The improvement has come in spite of strong capex spending and acquisition debt (Totaling Rs 30bn for FY17). We expect the company to report 11.5% volume CAGR over FY17 to FY19E, sustain the current level of EBIDTA margin and further improve its balance - sheet with strong free cash flow generation of Rs 10 bn per annum. Company also intends to scale-up its logistics and dredging businesses which will be value additive and complement the port business of the company. We revise our SoTP to Rs 425 from Rs 350 and continue to maintain BUY on the stock.

Shares of ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD. was last trading in BSE at Rs.359.8 as compared to the previous close of Rs. 359.05. The total number of shares traded during the day was 1951318 in over 7170 trades.

The stock hit an intraday high of Rs. 363.5 and intraday low of 350.55. The net turnover during the day was Rs. 697031037.

Source : Equity Bulls

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