Adani Ports share price gains over 2% as HSBC raises target after SC verdict on Hindenburg case
BSE. In the one week period, Adani Ports share price has rallied more than 9%.
HSBC has raised its target price on Adani Ports and Special Economic Zone (APSEZ) to ₹1,250 per share from ₹920 earlier as it believes that the Supreme Court verdict should cement investor confidence. The brokerage has a Buy rating on the stock.
The Supreme Court of India on Wednesday disposed of petitions seeking a third-party investigation into allegations of accounting fraud and stock manipulation levelled by US short seller Hindenburg Research. Read here: Adani Hindenburg Case Verdict Highlights: CJI Chandrachud directs Centre, SEBI to probe short-selling allegations In a big relief to the embattled Adani Group, the apex court ruled that the fraud allegations against the apples-to-airport conglomerate do not need more probes either by a special investigation team (SIT) or CBI, as it gave capital market regulator SEBI three more months to conclude its over two-year-old investigation.
HSBC expects that the verdict should renew the company’s expansion and shift focus to its solid Ops performance and thinks the company may be more open to inorganic opportunities and gearing its balance sheet. Analysts expect a 17% CAGR in the company’s EBITDA for FY2023-26E.
ROIC is also expected to rise to 17% in FY26 from 13% in FY23, as per HSBC. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Additionally, in a regulatory filing, Adani Ports and Special Economic Zone (APSEZ) said that its board of directors approved raising funds up to ₹5,000 crore via public issuance of non-convertible debentures of face value of ₹1,000 each amounting up to ₹5,000 crore
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