Adani Ports jumps on renewed buying after strong Q1 results
Adani Ports and Special Economic Zone surged 8.08% to Rs 258.90 at 11:52 IST on BSE, with the stock surging on renewed buying after the company reported strong Q1 June 2016 results.
Shares of Adani Ports and Special Economic Zone (APSEZ) had declined 0.35% to settle at Rs 239.55 yesterday, 9 August 2016 after the company announced strong Q1 June 2016 results during trading hours.
Meanwhile, the S&P BSE Sensex was down 227.95 points or 0.81% at 27,857.21.
On BSE, so far 11.89 lakh shares were traded in the counter as against average daily volume of 5.79 lakh shares in the past one quarter. The stock hit a high of Rs 259.75 and a low of Rs 243.95 so far during the day. The stock had hit a record high of Rs 374.70 on 20 August 2015. The stock had hit a 52-week low of Rs 169.65 on 12 February 2016. The stock had outperformed the market over the past one month till 9 August 2016, surging 15.7% compared with 3.53% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 21.63% as against Sensex's 9.33% rise.
The large-cap company has equity capital of Rs 414.19 crore. Face value per share is Rs 2.
APSEZ's consolidated net profit rose 30.8% to Rs 835.71 crore on 6.3% growth in net sales to Rs 1817.23 crore in Q1 June 2016 over Q1 June 2015. The company's consolidated cargo volumes increased by 7% to 42.33 million metric tonne (MMT) in Q1 June 2016 over Q1 June 2015.
APSEZ's Chief Executive Officer Karan Adani said that a healthy growth in cargo volumes, operational efficiencies and the company's strategy to increase bulk cargo volumes, other than coal volumes have enabled APSEZ to report all round growth in Q1 June 2016. The growth in bottom line during the quarter was a result of immense focus on controlling borrowing costs along with maintaining high EBITDA (earnings before interest, taxation, depreciation and amortization) margin, Adani said. Going forward, coastal shipping, commissioning of CT4, further growth in volumes at Kattupalli will be the company's focus areas, Adani added.
Meanwhile, a domestic brokerage has reportedly maintained its add rating on APSEZ stock in the wake of the company's strong Q1 earnings. The brokerage said that positives from APSEZ's results include diversification of cargo mix away from coal volumes and strong uptick in contribution from new ports among others.
APSEZ, a part of the Adani Group, is India's largest private port operator.
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