APSEZ extends slide after foreign brokerage cuts price target

Adani Ports and Special Economic Zone lost 3.08% to Rs 201.25 at 11:13 IST on BSE on reports that a foreign brokerage has reduced its price target on the stock, citing slowdown in the company's core port earnings growth.

Meanwhile, the S&P BSE Sensex was up 126.59 points or 0.5% at 25,228.32

On BSE, so far 8.57 lakh shares were traded in the counter as against average daily volume of 3.78 lakh shares in the past one quarter. The stock hit a high of Rs 210.25 and a low of Rs 197 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 underperformed the market over the past one month till 4 May 2016, sliding 14.35% compared with Sensex's 1.17% fall. The scrip had also underperformed the market in past one quarter, falling 3.24% as against Sensex's 3.14% gains.

The large-cap company has equity capital of Rs 414.19 crore. Face value per share is Rs 2.

The foreign brokerage has reportedly retained its hold rating on the Adani Ports and Special Economic Zone (APSEZ) stock. Shares of APSEZ had slumped 11.97% to settle at Rs 207.65 yesterday, 4 May 2016 on equity dilution worries after the company's board of directors decided to seek shareholders' approval to raise funds by way of issue of equity shares/convertible bonds up to Rs 10000 crore.

Adani Ports and Special Economic Zone (APSEZ)'s consolidated net profit rose 38.3% to Rs 914.06 crore on 18% increase in total income to Rs 2161.65 crore in Q4 March 2016 over Q4 March 2015. EBITDA (earnings before interest, taxes, depreciation and amortization) excluding other income rose 12% to Rs 1225 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Tuesday, 3 May 2016.

Cargo across all ports handled by the company rose 5% to 152 million metric tonnes (MMT) in the year ended 31 March 2016 over the year ended 31 March 2015. The company has given guidance of 10% to 15% growth in cargo volumes for the year ending 31 March 2017 (FY 2017). It has given guidance of 10% to 15% growth in net profit for FY 2017.

APSEZ, a part of the Adani Group, is India's largest private port operator.

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