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Adani Ports and Special Economic Zone Ltd Stock Analysis

Large Cap
Evaluated by 6022 users | BSE: 532921 | NSE: ADANIPORTS |
Port

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across many domestic ports in various maritime states of Gujarat, Goa,...

1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Adani Ports and Special Economic Zone Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.96%8.75%9.88%11.93%12.62%11.6%12.37%11.75%11.23%11.67%
Value Creation Index 0.14-0.22-0.120.070.130.040.100.050.000.04
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,0002,6973,5774,8306,1527,1098,43911,32310,92511,439
Y-o-Y Gr. Rt.-34.9%32.6%35%27.4%15.6%18.7%34.2%-3.5%4.7%
Adjusted EPS (Rs.) 4.545.668.158.2311.4214.0717.9519.3921.1224.37
Y-o-Y Gr. Rt.-24.7%44%1%38.8%23.2%27.6%8%8.9%15.4%
Book Value per Share (Rs.) 20.924.0231.9141.8551.5865.2184.63101.74118.49126.12
Adjusted Net Profit 9091,1341,6321,7032,3632,9133,7184,0154,3754,951
Net Op. Cash Flow (Rs. Cr.) 1,2091,2001,3791,1323,0572,3814,0635,6086,0297,402
Debt to Cash Flow from Ops 2.9714.678.4211.435.89.395.473.964.574.06
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Adani Ports and Special Economic Zone Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21.4%13.2%10.7%4.7%
Adjusted EPS 20.5%16.4%10.7%15.4%
Book Value per Share 22.119.614.26.4
Share Price 23.3% 31.9% 22.6% 143.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 23.7825.1929.1222.4624.192423.9620.8119.1819.74
Operating Profit Margin (%) 64.9766.4866.7961.6464.6165.0964.263.264.7362.45
Net Profit Margin (%) 45.3342.3844.6635.2838.5840.1343.8235.640.5443.51
Debt to Equity 0.863.651.821.491.661.651.271.051.121.17
Working Capital Days 171255424546537560549446517522
Cash Conversion Cycle -23-40-10383864889710069
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 63.74%
Institutions 32.73%
Non-Institutions 3.46%
Pledged *45.5142.3132.1040.2836.4158.2528.7030.8638.1515.97
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Adani Ports and Special Economic Zone Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Adani Ports and Special Economic Zone Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Adani Ports and Special Economic Zone Ltd's performance infers:

Adani Ports and Special Economic Zone Ltd earnings have grown by 16.4%, whereas share price has appreciated 31.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Adani Ports and Special Economic Zone Ltd share prices over the last 10 years. Here is what we found out:

Adani Ports and Special Economic Zone Ltd share price has appreciated 18.5% annually over the past ten years.

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across many domestic ports in various maritime states of Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha presents the most widespread national footprint with deepened hinterland connectivity. The port facilities are equipped with the latest cargo-handling

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across many domestic ports in various maritime states of Gujarat, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha presents the most widespread national footprint with deepened hinterland connectivity. The port facilities are equipped with the latest cargo-handling infrastructure which is not only best-in-class, but also capable of handling the largest vessels calling at Indian shores. The company’s ports are equipped to handle diverse cargos, from dry cargo, liquid cargo, crude to containers.

Through its subsidiary Adani Logistics Ltd., APSEZ operates three logistics parks located at Patli in Haryana, Kila-Raipur in Punjab and Kishangarh in Rajasthan. Over the years, APSEZ has evolved into a provider of integrated port infrastructure services, of which the Mundra SEZ in Gujarat is a landmark validation. The Mundra Economic Hub offers investment options as the largest multi-product SEZ, Free Trade and Warehousing Zone (FTWZ) and Domestic Industrial Zone.

The Company’s integrated services across three verticals, i.e. Ports, Logistics and SEZ, has enabled it to forge alliances with leading Indian businesses making APSEZ an undisputed leader in the Indian port sector. Along with its expertise in providing end-to-end logistics solutions, operational excellence, low-cost operations and synergies through acquisitions, the Company is backed by a young and dynamic workforce that propels it to greater heights.

Business area of the company

The Company is primarily engaged in one business segment, namely developing, operating and maintaining the Ports services, Ports related Infrastructure development activities and development of infrastructure at contiguous Special Economic Zone at Mundra, as determined by chief operating decision maker, in accordance with Ind-AS 108 “Operating Segments”.

Awards and Recognition

2016:

  • Dun and Bradstreet - India’s Leading Infrastructure Company Port Category - Infra Awards 2016.
  • Sea Port of the Year - Private at Logistic Asia Award 2016.
  • Sea Port of the Year - Liquid Terminal at Logistic Asia Award 2016.
  • Samudra Manthan Awards 2016 for Private Port of the Year.
  • Container Handling Port of the year at 7th all India Maritime and Logistics Awards.
  • Private Port/Terminal of the Year Award at India Seatrade Award 2016.
  • Best Port of the year (Non Containerized) Award at India Maritime Awards.
  • Best Port of the year (Containerised) Gujarat Star Awards.
  • Won Gold in “1st Annual EKDKN Exceed Award 2017”.
  • MALA Awards - Port/Maritime Personality of the year awarded to a senior official of the Company.
  • Global Ports Forum award for Port/Terminal Visionary of The Year 2017 awarded to a senior official of the Company.
  • Global Ports Forum award for Container Terminal Operator of the year 2017.
  • Sliver Trophy - “FINEST INDIA SKILLS & TALENT AWARD 2017” category of “Best Fire Safe Company – Services” after its launch for the first time in India.
  • Golden Peacock Award for Corporate Social Responsibility for the year 2016.

2017:

  • Golden Peacock Award for Occupational Health & Safety at 19th World Congress Global Conference
  • Private Port of the Year by Sea Trade Award
  • Best Environment Protection Award by Maritime Nation India Environment Protection Award
  • Best Terminals and Ports Operator at the 11th Express, Logistics & Supply Chain Leadership Awards
  • Best Shipping Port of the Year award at India Cargo
  • Gold at ‘Best Simulation based Learning Programme’ at CLO award organized by Leapvault with knowledge associate Tata Institute of Social Sciences
  • Commendation for Significant Achievement by CII-ITC Sustainability Awards 2017 for Domain Excellence - CSR
  • Gold Award in ‘2nd Annual EKDKN EMINENT Award 2017’ - Ek Kam Desh Ke Nam (EKDKN) CSR category in port sector
  • Silver Award - Innovation under the category of Transport & Logistics from OSH India Global Safety Conference - A UBM Event
    Silver Plaque at 30th World Ports Conference organized by International Association of Ports and Harbours
  • Gold and Silver Awards in 31st National Convention on Quality Concepts for Dahej and Haizra Ports

2018:

  • Golden Peacock Environment Management Award 2018 in the Port category
  • The All India Maritime and Logistics Awards (MALA) 2018 in the ‘Best Container Handling Terminal of the Year’ category
  • Behaviour Based Safety Award 2018 in the ‘Port’ category
  • The Gujarat Junction Award 2019 in the ‘Port of the Year - Containerised Cargo’ category
  • 12th ELSC Leadership Awards and 6th Procurement Excellence Awards’

2019:

  • Mundra Port was awarded a ‘Zero Waste Port’ certificate by Libero Assurance

2020:

  • The company’s three schools were recognised and appreciated at the recently held Samagra Shiksha Empowering Awards 2020, for providing quality and value-based primary education to the underprivileged.

Milestones

2015:

  • Adani begins development of India’s First Transhipment Port at Vizhinjam
  • Adani Ports commissions Tuna Tekra bulk terminal at Kandla in a record time of 24 months

2016:

  • Adani Ports and Terminal Investment to jointly develop a major transhipment hub at Mundra

2017:

  • Adani Ports, Mundra set National Record for the ‘largest parcel size of containers handled in one vessel’
  • Adani Ports begins Berth Construction at India’s First Transhipment Port at Vizhinjam
  • Adani Ports form JV with France’s CMA CGM to operate Container Terminal at Mundra Port
  • Adani Logistics commissions multimodal logistics park in Punjab and dedicates it to the nation

2018:

  • Adani and Total Join Forces to become a major integrated downstream player in the Indian Energy Market
  • Adani Logistics Ltd. (ALL) and NYK Auto Logistics (India) Private Ltd. (NALI) Announce Formation of Rail Logistics Joint Venture
  • APSEZ completes acquisition of Kattupalli port - Southern India’s new EXIM gateway - from L&T
  • Adani Ports signs a long term regasification pact with Indian Oil for Dhamra LNG terminal
  • Adani Ports Expands Dhamra Port Capacity Four Fold to 100 million tonne per annum

2019:

  • Adani Forays into Cold Chain Logistics with INR 296 Cr acquisition of Snowman Logistics
  • APSEZ & Wilhelmshaven Freight Village Container Terminal to jointly promote trade and shipping
  • Adani becomes 1st Indian port operator to record 200 MMT cargo movement

2020:

  • Adani Ports and SEZ Ltd. completes Rs. 12000 cr acquisition of Krishnapatnam Port Company Ltd. (KPCL).
  • APSEZ becomes the first Indian port to sign up for Science Based Targets Initiative (SBTi)
  • First Container vessel carrying Export Cargo from India to Bangladesh
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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