Adani Port is into port operation
and management and owns many ports. The Adani group company in on buying spree
in recent years and taking advantage of distress port valuation due to global
economic meltdown.
Most of the analyst and investors
are staying away from the Adani Ports with a view of their high level of debt
and continuous buying approach. We must recognize that their SEZ business is
doing extremely good and with new acquisition, organization will start to add
more incremental revenue. Indian export grew for the first time after few
months of negative growth as well as slow and steady recovery in economy will
add more firepower to organization financial aspect. They are trying to create
port corridor to grab business from other ports located in different countries.
The profitable organizations post
reverse split faced the investor agony and the share price went down from
around 350 range to 230 INR. It is expected that the share price will go back
to that level in next 12 month and may give you good 40% return.
Regarding debt, one should be
worries as their assets value is more than their debt level and along with that
their EBITA margin is good which is helping the organization to maintain the
debt servicing. The recent downgrade by rating firm dented the investor
community confidence but few good quarter will change the whole scenario.
Disclaimer - Take the advice from
your financial advisor before investing
