[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.

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

  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 PORT SPECIAL
ADANIPORTS.NS
₹ 683.85
-2.67%
Marketcap
1.40T
Volume
₹ 6,189,784.00
Shares
2,041,750,016
Range
₹ 679.70 - ₹ 712.65
52 Week Range
₹ 412.00 - ₹ 901.00
ADANI PORT SPECIAL
sector
Industrials
industryMarine Shipping
addressAdani Corporate House, Ahmedabad, India
countryIndia
phone91 79 2656 5555
websitehttp://www.adaniports.com
ADANI PORT SPECIAL
₹ 683.85
Open ₹ 704.00
High ₹ 712.65
Marketcap 1.40T
Close ₹ 683.85
Low ₹ 679.70
Volume ₹ 6,189,784.00

Adani Ports Chart

Adani Ports index presence

Adani ports stock is present in 26 indices list

NIFTYSERVICENIFTY100WEIGHTNIFTYEQWGT
NIFTY200LIQ15NIFTYINFRAST
BSE200SENSEXBSE500
BSEINFRABSE100CARBONEX
NIFTY50LRGCAPGREENEX
NIFTYLGEMID250NIFTY500NIFTY100
LMI250NIFTYHIGHBETASNSX50
BASE100LARGECAPTMCALLCAPS&PLARGEMIDCAP
INDSTRESG100

Adani Ports Infographics

Adani ports infographics
Adani ports infographics by Kamlesh Rode created in Figma.com

Overview of Adani Ports

Adani ports infographics - Overview

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 RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
31.0364.254.814.660.66%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

Adani Ports Infographics - Financials

Income statement of Adani Ports

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue12,333.8912,287.7813,871.9215,235.07
EBITDA8,001.167,884.897,874.8410,654.64
PBIT6,812.796,511.416,194.568,547.30
PBT5,234.135,126.224,243.926,292.01
Net Income3,673.623,990.223,763.134,994.30
EPS17.7419.2718.3424.58
DPS20.23.25
Payout ratio0.110.010.170.2
*EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ crores

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 YearFY 2018FY 2019FY 2020FY 2021
Current Assets14,286.9014,631.1414,819.9112,830.64
Loans & Advances
Net Property/Plant/Equipment23,059.2427,476.1330,778.7042,321.44
Goodwill & Intangibles4,156.235,128.775,152.149,512.61
Long Term Investments559.14268.491,166.111,097.39
Deferred Tax Assets (Net)1,168.14812.35922.65
Other Assets4,003.077,994.559,077.198,679.97
Non Current Assets32,945.8241,680.2947,096.7961,611.41
Total Assets47,232.7256,311.4361,916.7074,442.05
Current Liabilities4,008.9610,351.697,696.477,215.95
Non Current Liabilities21,913.6821,111.6628,280.0635,023.54
Total Liabilities25,922.6431,463.3535,976.5342,239.49
Total Equity21,310.0824,848.0825,940.1732,202.56
Total Liabilities & Shareholder’s Equity47,232.7256,311.4361,916.7074,442.05
Total Common Shares Outstanding207.1207.1203.18203.18
Shares outstanding numbers in cr. Other numbers in ₹ crores

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 YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-126.733,974.712,397.27-2,994.49
Changes in Working Capital-1,706.27-1,074.81141.36-464.44
Capital Expenditures2,732.152,940.493,621.412,351.70
Free Cash Flow2,875.993,088.913,780.405,204.08
All numbers in ₹ crores

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

Adani Ports infographics - peers
StockPE RatioPB RatioDividend Yield
Adani Ports and Special Economic Zone Ltd31.034.810.66%
Gujrat Pipovav Port ltd24.452.424.01%

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

Adani ports infographics - Shareholders

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%

InvestorsSep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21
Promoters 62.362.362.362.362.4662.4662.7963.5763.6563.7463.7463.79
FIIs 22.3121.8921.8221.4520.9318.7217.5317.0517.0517.7517.915.72
DIIs 11.9112.5212.5412.6613.7215.7616.6216.616.4315.6714.8314.84
Government 0.080.080.080.080.080.080.080.080.080.080.070.03
Public 3.43.213.263.52.812.982.982.692.782.763.465.62
All Values are in Percentage(%)

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

Adani Ports infographics - Dividend and bonus news

Dividends Table

Cash DividendDividend/ShareEx Date
Final₹5.0024-Jun-21
Cash DividendDividend/ShareEx Date
Interim₹3.2016-Mar-20
Cash DividendDividend/ShareEx Date
Final₹0.2026-Jul-19
Cash DividendDividend/ShareEx Date
Final₹2.0026-Jul-18
Cash DividendDividend/ShareEx Date
Final₹1.3031-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

BuybackRatioEx Date
Tender Offer20-Jun-19
Share SplitRatioEx Date
Face Value Change from 10 To 21:0523-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

Adani Ports Infographics - Expert forecast

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 PortsFuture Stock Price
20221050 to 1130
20251400 to 1500
20302400 to 2500
20353700 to 3900
20406200 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 infographics - store forecast

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

Que: Adani Port stock gives profit or loss?

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.

Que: Is Adani Ports over valued?

Ans: PB vs Industry: ADANIPORTS is overvalued based on its PB Ratio (5x) compared to the IN Infrastructure industry average (0.6x).

Que: What is the future of Adani Ports?

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.

Why Stock forecast by Kamlesh Rode?

5/5 - (1 vote)
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“I love to help people in technology, spirituality and always want people to get better in their lives. Today I’m a stock market enthusiast, a stock trader, web-mobile app developer, blogger, and a spiritual being.”

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