Adani Ports surged on the plan of issuing NCDs

Adani Ports and Special Economic Zone (SEZ) has announced a fund raising plan by issuing non-convertible debentures on private placement basis. After the announcement, Adani Ports share price has moved higher by 5.30% to Rs 286 on the NSE. 

The board of directors of the company will meet on Tuesday, October 25, 2016 to mull over issuing NCDs on private placement basis in one or more tranches within the limits permitted by shareholders at the AGM held on August 09, 2016. 

Prior, on October 14, the company informed the exchange that at the above mentioned board meeting, board will consider and consent the unaudited financial results for the Q2 and half year ended September 30, 2016. 

At 03:40 pm, Adani Ports share price was up 5% at Rs 285 on BSE, as compared to 0.52% rise in S&P BSE Sensex and 0.47% rise in the benchmark index Nifty. The trading volumes on the counter more than doubled with a pooled 12.3 million shares changed hands on BSE and NSE so far. 

Adani Ports is the dazzling spot in the Adani Group and is the top 500 pick by the Dynamic Levels for the quarter. Its earnings are growing constantly and the company is outperforming the sector on cargo volumes and anticipates doing well in the rest of the financial year.

In comparison to 4% growth in the industry, Adani Ports clocked 7% rise in volumes in the June quarter. Aided by market share gains and addition of new ports and facilities, the company expects volumes to go up by 10-15% in the current financial year. Last financial year, it had grown 5%. Comparatively, volumes at its peer Gujarat Pipavav Port Ltd declined in the June quarter and analysts at best anticipate the firm to report flat or low-single-digit volume growth for the full fiscal year.

Meanwhile, Adani ports share price closed at Rs. 285.25 up by 5%.

Still, Adani Ports’ valuations are at a discount to Gujarat Pipavav, whose performance and outlook is nothing much to talk about. Adani Ports’ price-to-earnings multiple is at around 15 times the current financial year earnings per share estimate, as against Gujarat Pipavav which is trading at about 28 times. Even on enterprise value to Ebitda, Gujarat Pipavav is valued better.

For details on the stock, visit Adani ports share price history page of Dynamic Levels website.