Adani Ports shares soar 4% ahead of board meet for preferential issue

The board of APSEZ is scheduled to meet today, i.e. April 17, 2025, to consider a proposal for the issuance preferential equity shares, among other matters.

Shares of Adani Ports and Special Economic Zone (APSEZ) have moved higher by 4 per cent to ₹1,281.20 on the BSE in Thursday’s intra-day trade ahead of the board meeting today to consider a proposal for issuance of equity shares of the company by way of preferential issue. The stock price of the Gautam Adani-led company is quoting higher for the sixth straight trading day, having rallied 15 per cent during the period.

 

“A meeting of the board of directors of the Company is scheduled to be held on April 17, 2025, to, inter alia, consider a couple of matters, one of which is a proposal for issuance of equity shares of the company by way of preferential issue,” APSEZ said in an exchange filing on April 14.

 

 

Despite the outperformance of the past six trading days, in the past six months, APSEZ has underperformed the market by falling nearly 9 per cent. In comparison, the BSE Sensex was down 3 per cent during the same period.

 

On March 12, 2025, APSEZ informed that Fitch Ratings has affirmed the company's long-term foreign-currency Issuer Default Rating (IDR) at 'BBB-' and removed it from Rating Watch Negative (RWN) and assigned a Negative Outlook to it.

 

The rating affirmation follows the demonstration of adequate funding access by the Adani Group following the US indictment of certain board members of another group entity, Adani Green Energy Limited (AGEL), on 20 November 2024, Fitch Ratings said in its rationale.

 

The rating agency believes the risk associated with the group's liquidity and funding requirements has moderated. However, the Negative Outlook reflects Fitch Ratings view that the proceedings and outcome of the US investigations could reveal further weaknesses in the group's corporate governance practices, which may lead to negative rating action in the near-to-medium-term. Fitch will monitor the investigations for any evidence of weakness in the entities' governance practices and internal controls, and the impact on APSEZ's financial flexibility.

 

APSEZ is India's largest commercial port operator, handling a quarter of the country's seaborne cargo through its 14 operational ports and terminals in India. Most are primary ports of call in their regions. Its flagship Mundra Port is the gateway to north-western India.

 

Meanwhile, for January to March 2025 quarter (Q4FY25), an analyst at Elara Capital expects overall volume growth across the logistics sector to slow, led by disruption in global trade, demand weakness across auto, fast moving consumer goods (FMCG), apparels, footwear and sugar industries and downward reset in growth rates in the eCommerce sector (platforms as well as direct to consumer [(D2C]). 

 

With Skymet predictions of a normal Monsoon and expected pickup in consumption, we remain hopeful of better volume pickup in FY26. At ports, clarity on tariffs and global supply chain would drive volume. For Q4FY25, the brokerage firm expects JSW Infrastructure to outperform on earnings. The Elara analyst prefers Delhivery and APSEZ in the logistics space.

 

APSEZ reported Q4 volume growth at 9 per cent year-on-year (YoY), and the analyst expects revenue growth of 19 per cent YoY to ₹8,200 crore, led by consolidation of the Astro Marine business, ports and logistics segment growth. The brokerage firm in quarterly preview said that they expect consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) margin at 59 per cent, led by domestic port margin at 71 per cent, logistics at 24 per cent and international at 17 per cent.

 

In the ports sector, Elara Capital prefers APSEZ, due to favorable valuation and growth, led by expansion of capacity in domestic and international geographies.