The Adani Ports and Special Economic Zone (APSEZ) stock fell in early trade today after the firm reported a 9 per cent decline in consolidated profit due to forex losses for the first quarter ended June 30. The stock fell over nearly 6.5 percent intra day to hit a low of 371.20 compared to its previous close of 397.75 on the BSE. It is the top Sensex loser today.
At 12:39 pm, the stock was trading 6.06% or 24 points lower at 373.65. The market capitalisation of the stock fell to Rs 77,391 crore.
The stock has been falling for the last two days and has lost 6.63% during the period.
The stock is down 10.17% during the last one year and over 8.24% since the beginning of this year compared to over 10% rise in Sensex.
12 of 24 brokerages rate the stock 'outperform', seven "buy" and five "hold", according to Reuters.
The large cap stock has expensive valuation and is a high beta stock. It has a beta of 1.39 with the Sensex.
It means the stock is 39% more volatile than the Sensex.
A stock with beta greater than 1 gives higher return when market rises. It also falls more in comparison to the market.
Beta value of 1 means the stock's returns are in line with the market or the index to which it is compared.
The firm posted Rs 697.40 crore net profit in Q1 compared to net profit of Rs 767.52 crore in the April-June quarter of last fiscal, APSEZ said in a filing to BSE.
It reported mark-to-market loss of Rs 383 crore in the last quarter compared with a gain of Rs 32 crore in the corresponding period of last fiscal.
The company's consolidated income also decreased to Rs 2,703.86 crore during quarter under review, from Rs 2,959.63 crore in the year-ago period.
Its total expenditure during the said period was at Rs 1,781.46 crore as against Rs 1,867.43 crore in April-June 2017.
Macquarie has given a neutral call on the stock with a target price of 385 saying that after adjusting for forex loss, core operating performance was in-line with expectations. It said FY19 volume guidance looks achievable for the firm, but growth is likely to taper off from FY20.
Morgan Stanley is overweight on the Adani Port stock with a target price of Rs 471. It said Q1 is in line with its expectations.
Adani Ports and Special Economic Zone is a Ahmedabad-based port infrastructure company. The firm is engaged in the business of developing, operating and maintaining the port and port-based related infrastructure facilities, including multi product special economic zone (SEZ). Its segments include port and SEZ activities, and others.
Its others segment mainly includes aircraft operating income and services. The company also provides logistics and infrastructure that moves goods from the port to customers.
Written and edited by Aseem Thapliyal