[Infographics] Adani Ports | Adani Ports Fundamentals, Expectations Vs. Reality

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.

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

1. The company intends to become the world’s largest private port company by 2030
2. 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

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

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

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%

Shareholders of Adani Ports

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

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

Expert Forecast of Adani Ports

The stock forecast of Adani Ports stock for the year 2022

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

Why Stock forecast by Kamlesh Rode?