Invest in Adani Ports - Expect Great Return Post Economic Recovery


Adani Port is into port operation and management and owns many ports. The Adani group company in on buying spree in recent years and taking advantage of distress port valuation due to global economic meltdown.

Most of the analyst and investors are staying away from the Adani Ports with a view of their high level of debt and continuous buying approach. We must recognize that their SEZ business is doing extremely good and with new acquisition, organization will start to add more incremental revenue. Indian export grew for the first time after few months of negative growth as well as slow and steady recovery in economy will add more firepower to organization financial aspect. They are trying to create port corridor to grab business from other ports located in different countries.

The profitable organizations post reverse split faced the investor agony and the share price went down from around 350 range to 230 INR. It is expected that the share price will go back to that level in next 12 month and may give you good 40% return.

Regarding debt, one should be worries as their assets value is more than their debt level and along with that their EBITA margin is good which is helping the organization to maintain the debt servicing. The recent downgrade by rating firm dented the investor community confidence but few good quarter will change the whole scenario.

Disclaimer - Take the advice from your financial advisor before investing

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