Adani Ports share price gains as analysts maintain bullish stance after Q2 results

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Adani Ports and Special Economic Zone (APSEZ) reported a rise of 4.2% in its Q2FY24 net profit at ₹1,747.8 crore, compared to ₹1,677.5 crore in the corresponding period last year. The port major's revenue from operations in the quarter ended September 2023 stood at ₹6,646.6 crore, registering a growth of 27.6%, compared to ₹5,210.8 crore in the year-ago period.

Also Read: Adani Ports Q2 Results: Net profit rises 4.2% to ₹1,748 crore, revenue up 27% YoY On the operating front, Adani Ports' earnings before interest, taxes, depreciation, and amortization (EBITDA) during the quarter increased 35% to ₹4,053.9 crore from ₹3,005.5 crore, while EBITDA margins improved to 61% from 57.7%, YoY. Brokerages maintained their bullish view on Adani Ports stock on the back of better operational performance, with some analysts raising target prices and earnings estimates.

Here’s what brokerages said on AdanI Ports Q2 results and Adani Ports shares: Kotak Institutional Equities said Adani Ports & SEZ is its top pick among infrastructure assets. “Operating metrics are tracking ahead on the guidance and leverage continues to decline.

We are also enthused by a cleaner balance sheet, with the return of security deposits and absence of any meaningful lending/return of ICDs," said the brokerage firm. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) It increased its estimates by 5% on higher port EBITDA margin in the Mundra, Krishnapatnam and Kattupali ports.

It continues to discount cash flows of Adani Ports at a high 11.8% WACC or 13.5% cost of equity and thus, considers good value in the stock at CMP. The brokerage retained its ‘Buy’ rating