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Citi assigns buy call to Adani Ports stock, sees 35% upside

Citi assigns buy call to Adani Ports stock, sees 35% upside

Citi in a note said the firm reiterated FY23E volume guidance of 350-360 million tonne and underlined April/May volumes were in line with guidance.

The management of the company also emphasised on being net free cash flow positive, maintaining a comfortable leverage ratio, investment-grade rating, and 20-25 per cent dividend payout ratio, the brokerage added. The management of the company also emphasised on being net free cash flow positive, maintaining a comfortable leverage ratio, investment-grade rating, and 20-25 per cent dividend payout ratio, the brokerage added.

Shares of Adani Ports fell nearly 5 per cent today despite Citi assigning a buy call on the Adani Group firm. Citi gave a target price of Rs 981, a 35 per cent upside over the previous closing price of Rs 726.40 on BSE. Citi in a note said the firm reiterated FY23E volume guidance of 350-360 million tonnes and underlined April/May volumes were in line with guidance.

The management of the company also emphasised on being net free cash flow positive, maintaining a comfortable leverage ratio, investment-grade rating, and 20-25 per cent dividend payout ratio, the brokerage added.

Shares of Adani Ports touched an intraday low of Rs 688.95, falling 5.16 per cent on BSE amid a bloodbath in the broader markets. The stock opened with a loss of 2.26 per cent at Rs 710 today.

Adani Ports stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Adani Ports share has lost 17.2 per cent in one year and fallen 5 per cent since the beginning of this year. The market cap of the firm fell to Rs 1.46 lakh crore on BSE. Total 1.74 lakh shares of the firm changed hands amounting to a turnover of Rs 12.22 crore on BSE.

The large-cap share hit a 52-week high of Rs 924.65 on April 27, 2022 and a 52-week low of Rs 638 on June 18, 2021.

In the fourth quarter of last fiscal, net profit fell 21.8 per cent to Rs 1,033.02 crore against Rs 1,320.69 crore in the corresponding quarter a year ago.

However, total income climbed 8.5 per cent at Rs 4,417.87 crore in Q4 from Rs 4,072.42 crore in the year-ago period. The company said it achieved a total cargo volume of 312 MMT, a growth of 26 per cent year-on-year. Its consolidated EBITDA (excluding Gangavaram) grew by 22 per cent to Rs 9,811 crore on the back of 27 per cent growth in revenue, it said.

The company added that acquisitions worth Rs 11,400 crore were made while maintaining the credit quality.

Meanwhile, Sensex crashed 1,714 points to 52,588 and Nifty declined 504 points to 15,697 in the late afternoon trade.