NSEI:ADANIPORTS

Stock Analysis Report

Adani Ports and Special Economic Zone

Executive Summary

Adani Ports and Special Economic Zone Limited, together with its subsidiaries, develops, operates, and maintains ports and related infrastructure facilities in India.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.

Share Price & News

How has Adani Ports and Special Economic Zone's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADANIPORTS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

ADANIPORTS

-2.3%

IN Infrastructure

-3.9%

IN Market


1 Year Return

-36.8%

ADANIPORTS

-39.2%

IN Infrastructure

-32.2%

IN Market

Return vs Industry: ADANIPORTS exceeded the Indian Infrastructure industry which returned -38.4% over the past year.

Return vs Market: ADANIPORTS underperformed the Indian Market which returned -30.7% over the past year.


Shareholder returns

ADANIPORTSIndustryMarket
7 Day-2.6%-2.3%-3.9%
30 Day-29.9%-29.5%-26.8%
90 Day-36.0%-36.7%-31.7%
1 Year-36.0%-36.8%-38.4%-39.2%-30.8%-32.2%
3 Year-28.1%-29.5%-37.7%-39.5%-19.5%-23.8%
5 Year-21.3%-23.5%-33.4%-36.5%-10.0%-14.9%

Price Volatility Vs. Market

How volatile is Adani Ports and Special Economic Zone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adani Ports and Special Economic Zone undervalued compared to its fair value and its price relative to the market?

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADANIPORTS (₹244.8) is trading below our estimate of fair value (₹318.82)

Significantly Below Fair Value: ADANIPORTS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADANIPORTS is poor value based on its PE Ratio (10.7x) compared to the Infrastructure industry average (5.7x).

PE vs Market: ADANIPORTS is poor value based on its PE Ratio (10.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: ADANIPORTS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ADANIPORTS is overvalued based on its PB Ratio (2x) compared to the IN Infrastructure industry average (0.2x).


Next Steps

Future Growth

How is Adani Ports and Special Economic Zone forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADANIPORTS's forecast earnings growth (13.4% per year) is above the savings rate (6.5%).

Earnings vs Market: ADANIPORTS's earnings (13.4% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: ADANIPORTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADANIPORTS's revenue (11.8% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: ADANIPORTS's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADANIPORTS's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Adani Ports and Special Economic Zone performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADANIPORTS has high quality earnings.

Growing Profit Margin: ADANIPORTS's current net profit margins (40.6%) are higher than last year (32.9%).


Past Earnings Growth Analysis

Earnings Trend: ADANIPORTS's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: ADANIPORTS's earnings growth over the past year (29.8%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: ADANIPORTS earnings growth over the past year (29.8%) underperformed the Infrastructure industry 29.8%.


Return on Equity

High ROE: ADANIPORTS's Return on Equity (18.8%) is considered low.


Next Steps

Financial Health

How is Adani Ports and Special Economic Zone's financial position?


Financial Position Analysis

Short Term Liabilities: ADANIPORTS's short term assets (₹168.9B) exceed its short term liabilities (₹88.8B).

Long Term Liabilities: ADANIPORTS's short term assets (₹168.9B) do not cover its long term liabilities (₹281.9B).


Debt to Equity History and Analysis

Debt Level: ADANIPORTS's debt to equity ratio (124.1%) is considered high.

Reducing Debt: ADANIPORTS's debt to equity ratio has reduced from 165.8% to 124.1% over the past 5 years.

Debt Coverage: ADANIPORTS's debt is well covered by operating cash flow (21.8%).

Interest Coverage: ADANIPORTS's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet

Inventory Level: ADANIPORTS has a high level of physical assets or inventory.

Debt Coverage by Assets: ADANIPORTS's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Adani Ports and Special Economic Zone's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADANIPORTS's dividend (1.31%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: ADANIPORTS's dividend (1.31%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: ADANIPORTS's dividend payments have been volatile in the past 10 years.

Growing Dividend: ADANIPORTS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (0.9%), ADANIPORTS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADANIPORTS's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Karan Adani (32yo)

4.25s

Tenure

₹15,000,000

Compensation

Mr. Karan G. Adani has been the Chief Executive Officer of Adani Ports and Special Economic Zone Limited (APSEZL) of Adani Enterprises Limited since January 1, 2015 and previously served as its Executive D ...


CEO Compensation Analysis

Compensation vs Market: Karan's total compensation ($USD196.79K) is below average for companies of similar size in the Indian market ($USD946.79K).

Compensation vs Earnings: Karan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gautambhai Adani
Chairman & MD13.67yrs₹28.00mno data
Karan Adani
CEO & Whole Time Director4.25yrs₹15.00mno data
Deepak Maheshwari
Chief Financial Officer1.92yrs₹61.96m0.00049% 2.4m
Kamlesh Bhagia
Company Secretary & Compliance Officer1.67yrs₹4.76mno data
Malay Mahadevia
Whole-Time Director10.92yrs₹96.17mno data
T. Purohit
General Manager of Law14.33yrs₹1.10mno data
Umesh Shedde
General Manager of Marketing & Business Developmentno data₹70.00kno data
Sunil Gupta
President of Corporate & Business Developmentno data₹830.00kno data
Krishnamohan Rao
Joint President & Head Human Resourcesno datano datano data
Gudena Rao
Director of Portsno datano datano data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: ADANIPORTS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gautambhai Adani
Chairman & MD13.67yrs₹28.00mno data
Karan Adani
CEO & Whole Time Director4.25yrs₹15.00mno data
Malay Mahadevia
Whole-Time Director10.92yrs₹96.17mno data
Bharat Sheth
Non-Executive Independent Director0.50yrno datano data
Rajeshbhai Adani
Non-Independent & Non-Executive Director21.92yrs₹930.00k0.0015% 7.4m
Radhika Haribhakti
Independent Non-Executive Director5.08yrs₹1.81mno data
Ganesan Raghuram
Independent Non-Executive Director7.92yrs₹1.81mno data
Gopal Pillai
Independent Non-Executive Director7.5yrs₹1.64mno data
Nirupama Rao
Additional Non-Executive & Independent Director1yrno datano data
Mukesh Kumar
Non-Independent & Non-Executive Director1.5yrsno datano data

6.3yrs

Average Tenure

59yo

Average Age

Experienced Board: ADANIPORTS's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Adani Ports and Special Economic Zone Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adani Ports and Special Economic Zone Limited
  • Ticker: ADANIPORTS
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: ₹497.373b
  • Shares outstanding: 2.03b
  • Website: https://www.adaniports.com

Number of Employees


Location

  • Adani Ports and Special Economic Zone Limited
  • Adani Corporate House
  • Shantigram
  • Ahmedabad
  • Gujarat
  • 382421
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532921BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2007
ADANIPORTSNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2007

Biography

Adani Ports and Special Economic Zone Limited, together with its subsidiaries, develops, operates, and maintains ports and related infrastructure facilities in India. The company operates 10 ports and terminals with 48 berths to facilitate the handling of dry, liquid, crude oil, containers, ro-ro, bulk, and LNG cargo at Mundra, Kandla, Hazira, Dahej, Dhamra, Vizag, Murmugao, Kattupalli, Vizhinjam, and Ennore port locations. It also provides auto logistics, inland waterways, rail operation, warehousing, and agriculture logistics services, as well as operates multi-modal logistics parks; and offers capital, maintenance, and inland water dredging services. In addition, the company operates Mundra special economic zone located in Kachchh, Gujarat. Further, it engages in power distribution activities. The company was formerly known as Mundra Port and Special Economic Zone Limited and changed its name to Adani Ports and Special Economic Zone Limited in January 2012. Adani Ports and Special Economic Zone Limited was incorporated in 1998 and is headquartered in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 15:07
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.