Adani Ports & Special Economic Zone belongs to the Industrial sector(Ports). This industry is related to the development, operations, and maintenance of port infra. Adani Ports are in port services and related infrastructure onshore and have linked multi-product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra.
Sector: Industrials (Ports)
Large Capital: 1,54,968 Cr
Business Verticals
Adani ports get 92.1% of total revenue from a network of ports and terminals. 7.6% of revenue comes from logistics SEZ and the remaining 0.3% from industrial land. The integrated service offered by the company has enabled it to forge an alliance with leading businesses and has evolved to be the market leader of the Indian port Industry.
Largest Port Operator in India
APSEZ is India’s largest port developer and operator comprising 12 ports and terminals with a 498 MMT of augmented capacity, its ports and terminals — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and Kattupalli and Ennore in Tamil Nadu — that represent 24% of the country’s total port capacity and it also possesses the largest container handling facility in India.
Growth through a String of Acquisitions
The company follows a cluster-based expansion strategy to expand its footprints and they have made series of acquisitions and have successfully integrated them and in the FY20 APSEZ announced four acquisitions — Krishnapatnam Ports, GPL, Dighi Ports & SRCPL which enhances the presence of the company in the East and West coast.
High Cargo Growth
The company has reported a high cargo across all the ports and it achieved a cumulative growth of 11% for the FY21. The company has been able to outgrow the industry growth majorly due to its efficient and agile management as the ports have the lowest transit time compared to its competitors and more than 60% of the Cargos are backed either by Long term pacts or by Strategic partnerships.
Integrated Logistics Player
APSEZ through its subsidiary operates five logistics parks at Haryana, Punjab, Rajasthan, and Karnataka with 4,00,000 sq. ft of warehousing space. Under a concession from the Food Corporation of India and various state government agri-commodity warehousing departments, the Company owns, operates, or is in the process of developing silo bases for the storage of food grain and facilitate the transportation of grain. The company has a silo capacity under operation and development of about 0.87 MMT.
Expanding Logistics Footprints
The Company’s logistics business diversified its portfolio by scaling railway rolling stock through GPWIS, venturing into the warehousing business by partnering with Flipkart, developing state-of-the-art MMLPs, and consolidating railway track assets and the Company emerged as India’s first private sector rail track Company by acquiring SRCPL to invest in strategic rail lines.
Adani Logistics will construct a massive 5,34,000 sq. ft. fulfillment center in its proposed logistics hub in Mumbai.
Special Economic Zone
In this segment, the company has developed a multi-product SEZ at Mundra which is the largest SEZ in India, with an area of 8,481 hectares. Mundra offers investment options in Multi-product SEZ, Free trade warehousing zone, and Domestic Industrial zone. There have been 55 entities that have obtained approval for setting up units in the SEZ. Few companies have started operations, some are under construction, and these units invested about H14,293 crores.
Growth Strategies
- The company intends to become the world’s largest private port company by 2030
- The company dreams to become a one-point customer-centric transport utility across port and hinterland with a pan-India integrated logistics presence by expanding logistics portfolio into the rail, logistics parks, warehouse, cold-storage, air freight stations, grain silos, inland waterways and trucking
Reducing Advances & Loans to Group Companies
APSEZ is a part of the Adani group of companies and the group has been embarking on a debt-fuelled expansion and APSEZ has provided high Advances to its group companies but the company has been reducing its Advances and in they have provided Advances worth 12,100 Crores in FY21 from 35,100 Crores in the previous year
Adani Ports Today
Industrials | |
Marine Shipping | |
Adani Corporate House, Ahmedabad, India | |
India | |
91 79 2656 5555 | |
http://www.adaniports.com |
Adani Ports Chart
Adani Ports index presence
Adani ports stock is present in 26 indices list
NIFTYSERVICE | NIFTY100WEIGHT | NIFTYEQWGT |
NIFTY200 | LIQ15 | NIFTYINFRAST |
BSE200 | SENSEX | BSE500 |
BSEINFRA | BSE100 | CARBONEX |
NIFTY50 | LRGCAP | GREENEX |
NIFTYLGEMID250 | NIFTY500 | NIFTY100 |
LMI250 | NIFTYHIGHBETA | SNSX50 |
BASE100LARGECAPTMC | ALLCAP | S&PLARGEMIDCAP |
INDSTR | ESG100 |
Adani Ports Infographics
Overview of Adani Ports
Key Takeaway
- Current price of Adani Ports stock is lower than Intrinsic value.
- Adani Ports stock offered higher return than fixed-deposites
- This stock did not offered good dividend returns in past.
- Adani Ports stocks does not come in ASM/GSM list. No red flags.
Key Metrics
PE Ratio | Sector PE | PB Ratio | Sector PB | Dividend Yield | Sector Div Yld |
31.03 | 64.25 | 4.81 | 4.66 | 0.66% | 0.72% |
Key Takeaway
- Adani Ports stock have good PE ratio more than 31, which is great for investment decisions.
- Sector PE is more than 64.
- PB ratio and Sector PB ratio is more than 4 for Adani ports stock.
- Dividend yield is not too good for Adani Ports stock.
Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics
Financials of Adani Ports
Income statement of Adani Ports
Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Total Revenue | 12,333.89 | 12,287.78 | 13,871.92 | 15,235.07 |
EBITDA | 8,001.16 | 7,884.89 | 7,874.84 | 10,654.64 |
PBIT | 6,812.79 | 6,511.41 | 6,194.56 | 8,547.30 |
PBT | 5,234.13 | 5,126.22 | 4,243.92 | 6,292.01 |
Net Income | 3,673.62 | 3,990.22 | 3,763.13 | 4,994.30 |
EPS | 17.74 | 19.27 | 18.34 | 24.58 |
DPS | 2 | 0.2 | 3.2 | 5 |
Payout ratio | 0.11 | 0.01 | 0.17 | 0.2 |
Key Takeaway
Income Statement
Higher than Industry Revenue Growth
Over the last 5 years, revenue has grown at a yearly rate of 14.21%, vs industry avg of 13.33%
Higher than Industry Net Income
Over the last 5 years, net income has grown at a yearly rate of 11.51%, vs industry avg of 10.79%
Increasing Market Share
Over the last 5 years, market share increased from 91.52% to 95.12%
A balance sheet of Adani Ports
Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Current Assets | 14,286.90 | 14,631.14 | 14,819.91 | 12,830.64 |
Loans & Advances | — | — | — | — |
Net Property/Plant/Equipment | 23,059.24 | 27,476.13 | 30,778.70 | 42,321.44 |
Goodwill & Intangibles | 4,156.23 | 5,128.77 | 5,152.14 | 9,512.61 |
Long Term Investments | 559.14 | 268.49 | 1,166.11 | 1,097.39 |
Deferred Tax Assets (Net) | 1,168.14 | 812.35 | 922.65 | — |
Other Assets | 4,003.07 | 7,994.55 | 9,077.19 | 8,679.97 |
Non Current Assets | 32,945.82 | 41,680.29 | 47,096.79 | 61,611.41 |
Total Assets | 47,232.72 | 56,311.43 | 61,916.70 | 74,442.05 |
Current Liabilities | 4,008.96 | 10,351.69 | 7,696.47 | 7,215.95 |
Non Current Liabilities | 21,913.68 | 21,111.66 | 28,280.06 | 35,023.54 |
Total Liabilities | 25,922.64 | 31,463.35 | 35,976.53 | 42,239.49 |
Total Equity | 21,310.08 | 24,848.08 | 25,940.17 | 32,202.56 |
Total Liabilities & Shareholder’s Equity | 47,232.72 | 56,311.43 | 61,916.70 | 74,442.05 |
Total Common Shares Outstanding | 207.1 | 207.1 | 203.18 | 203.18 |
Key Takeaway
Higher than Industry Debt to Equity Ratio
Over the last 5 years, the debt to equity ratio has been 112.74%, vs industry avg of 103.11%
Lower than Industry Current Ratio
Over the last 5 years, current ratio has been 209.94%, vs industry avg of 211.05%
Cash Flow statement of Adani Ports
Financial Year | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Net Change in Cash | -126.73 | 3,974.71 | 2,397.27 | -2,994.49 |
Changes in Working Capital | -1,706.27 | -1,074.81 | 141.36 | -464.44 |
Capital Expenditures | 2,732.15 | 2,940.49 | 3,621.41 | 2,351.70 |
Free Cash Flow | 2,875.99 | 3,088.91 | 3,780.40 | 5,204.08 |
Key Takeaway
Higher than Industry Free Cash Flow Growth
Over the last 5 years, free cash flow growth has been 82.69%, vs an industry avg of 81.86%.
Peers of Adani Ports
Stock | PE Ratio | PB Ratio | Dividend Yield |
Adani Ports and Special Economic Zone Ltd | 31.03 | 4.81 | 0.66% |
Gujrat Pipovav Port ltd | 24.45 | 2.42 | 4.01% |
Key Takeaway
- Adani ports have good PE ratio than peer Gujrat Pipovav Port Ltd.
- Adani Ports have PB ratio of more than 4 and it is more than its peer.
- Adani Port do not offer good dividend yield so it is very less than peer, just 0.66%
Promoter Holdings Trend
Total Promoter Holding
In last 6 months, promoter holding in the company has almost stayed constant
Low Pledged Promoter Holding
Pledged promoter holdings are insignificant
Institutional Holdings Trend
Mutual Fund Holding
In the last 3 months, the mutual fund holding of the company has almost stayed constant
Decreased Foreign Institutional Holding
In the last 3 months, foreign institutional holding of the company has decreased by 2.18%
Investors | Sep-18 | Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | Mar-20 | Jun-20 | Sep-20 | Dec-20 | Mar-21 | Jun-21 |
Promoters | 62.3 | 62.3 | 62.3 | 62.3 | 62.46 | 62.46 | 62.79 | 63.57 | 63.65 | 63.74 | 63.74 | 63.79 |
FIIs | 22.31 | 21.89 | 21.82 | 21.45 | 20.93 | 18.72 | 17.53 | 17.05 | 17.05 | 17.75 | 17.9 | 15.72 |
DIIs | 11.91 | 12.52 | 12.54 | 12.66 | 13.72 | 15.76 | 16.62 | 16.6 | 16.43 | 15.67 | 14.83 | 14.84 |
Government | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.03 |
Public | 3.4 | 3.21 | 3.26 | 3.5 | 2.81 | 2.98 | 2.98 | 2.69 | 2.78 | 2.76 | 3.46 | 5.62 |
Key Takeaway
- The promotors are contastently kept on increasing their stakes in Adani ports. They have kept more than 63% investment in this stock
- FIIs(Foreign Institutional Investors) limited their stakes in Adani ports by 15% compared to year 2018
- Domestic institutional investors (DIIs) also increases their investments 11% to 14% in the year 2021.
- Government have very low investment of 0.3% in Adani ports stocks.
- Whereas Public have increase their investment to 5%.
Dividend and Split
Dividends Table
Cash Dividend | Dividend/Share | Ex Date |
Final | ₹5.00 | 24-Jun-21 |
Cash Dividend | Dividend/Share | Ex Date |
Interim | ₹3.20 | 16-Mar-20 |
Cash Dividend | Dividend/Share | Ex Date |
Final | ₹0.20 | 26-Jul-19 |
Cash Dividend | Dividend/Share | Ex Date |
Final | ₹2.00 | 26-Jul-18 |
Cash Dividend | Dividend/Share | Ex Date |
Final | ₹1.30 | 31-Jul-17 |
Dividend Trend
No Trend In Dividends
ADANI PORTS has shown an inconsistent dividend trend over the last 5 years
Dividend Yield
The current dividend yield is 0.68%. An investment of ₹1,000 in the stock is expected to generate a dividend of ₹6.75 every year
Key Takeaway
- Adani Ports company gave regular dividend from last 4 years.
- Maximum dividend of Rs.5 given by Adani ports this year 2021.
Bonus/Split Table
Buyback | Ratio | Ex Date |
Tender Offer | — | 20-Jun-19 |
Share Split | Ratio | Ex Date |
Face Value Change from 10 To 2 | 1:05 | 23-Sep-10 |
Key Takeaway
- Adani ports company gave stock split 1:5 ratio in the year 2010
- After 2010, Adani ports company did not offered any stock split uptill now.
Read more about dividend and dividend yield with infographics | Stock split with infographics
Strength & Limitations
Strengths
- The Company has been maintaining an effective average operating margins of 59.23% in the last 5 years.
- The company has a good cash flow management; CFO/PAT stands at 1.18.
Limitations
- The company has shown a poor profit growth of -7.14% for the Past 3 years.
- The company has shown a poor revenue growth of -12.50% for the Past 3 years.
- The company is trading at a high PE of 90.84.
- The company is trading at a high EV/EBITDA of 32.15.
Expert Forecast of Adani Ports
The stock forecast of Adani Ports stock for the year 2022
High
₹1060
Median
₹884
Low
₹746
Future stock price targets of Adani Ports stock
The target of Adani Ports | Future Stock Price |
2022 | 1050 to 1130 |
2025 | 1400 to 1500 |
2030 | 2400 to 2500 |
2035 | 3700 to 3900 |
2040 | 6200 to 6700 |
Please Note
These stock forecast or stock predictions solely based on historical data and related estimates by industry experts. Please do take advice from certified people and then go for investment.
Here predictions are just data for your information. We here declare that the stock forecast team does not responsible for any price changes or the price does not go expected. At last, it is solely based on how the stock market is running at that certain conditions.
Stock Forecast Predictions
Adani Ports stock is doing well in terms of ratios.
This stock had a CAGR of more than 24% from the last 5 years but failing to deliver in ratios.
Earnings per share (EPS) is 8.96
The price-to-earnings ratio is 90 from the last 5 years.
What if I invest in 100 stocks for the upcoming years? You will be happy by the return showing in the image above
These are future investment values are calculated based on a CAGR(Compound Annual Growth Rate) of 24%.
If this stock keeps CAGR average value for upcoming years, then look at the huge numbers
For my investment of Rs. 41800(100 Adani Ports stocks)
For the first year, I will be getting more than 1 Lac
For the next 5 years, the Investment will be more than 1.43, Lac
then for the next 10 years, the investment will touch more than 7L.
For the next 15 years, more than 22 Lacs will be the investment value.
and in the next 20 years, the investment will touch more than 68 Lacs.
Look at after 25 years number, they are huge. More than 2 Crore.
You must be laughing but CAGR with compounding giving this amazing result.
Read How Rs.10,000 converted into 1770 Crores Wipro case study?
Conclusion
Looking at the overall fundamental analysis of Adani ports, it clear that this company is fundamentally very strong company. PE ration and EPS ratio are very constant and increasing from the last 5 years. This company gave CAGR of more than 24% from last 5 years. It is a huge opportunity to investors for buying this stock.
Retail investor can keep the stock for a year or two. There are bright chances about multifold growth of this company.
Frequently Asked Questions
Ans: Well it depends on overall fundamental analysis of a stock company. Adani ports gave good return on investment in the past. This stock consistently performed well in term of long time investments.
Ans: PB vs Industry: ADANIPORTS is overvalued based on its PB Ratio (5x) compared to the IN Infrastructure industry average (0.6x).
Ans: Adani Ports and Special Economic Zone’s earnings over the next few years are expected to increase by 84%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Simply well written and explained post.
Thank you for your kind words.