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Adani Ports stock is a good buy

NewsAdani Ports stock is a good buy

Around 95% of India’s trade by volume and 70% by value move through maritime transport, which shows their contribution in backing the growth and development of the Indian economy. Adani Ports and Special Economic Zone Limited accounts for nearly one-fourth of the cargo movement in the country. It has a presence across 10 domestic ports. The port facilities are equipped with the latest cargo-handling infrastructure capable of handling largest vessels. Adani Logistics Ltd. operates three logistics parks located in Haryana, Punjab and Rajasthan with the ability to handle 500,000 twenty foot equivalent units annually. Over the years, it has evolved into a provider of integrated port infrastructure services, of which the Mundra SEZ in Gujarat is a landmark validation. On the other hand, the government is doing its bit by focusing on improving operational capabilities through policy and procedural changes and mechanisation. The Jal Marg Vikas Project is being executed on the Haldia-Varanasi stretch of National Waterway-1 with the technical assistance and investment support of the World Bank on a 50:50 sharing basis between the Government of India and the World Bank respectively. The project involves the construction of three multi-modal terminals; two inter-modal terminals; five Roll On-Roll Off (Ro-Ro) terminal pairs, integrated vessel repair and maintenance facilities; a Differential Global Positioning System; a River Information System and river training and river conservancy works. India’s No.1 port, JNPT is developing a SEZ under the Engineering, Procurement and Construction (EPC) model and will be a self sustainable Integrated development project having a potential to generate over 1.5 lakh direct and indirect jobs. Adani Ports has recently announced the acquisition of the multi cargo Krishnapatnam Ports in Andhra Pradesh for an enterprise value of Rs 12,000 crore. By this acquisition, Adani Ports will be striding towards 500 MT capacity in the next five years. The company has been posting decent financial results with revenue increasing at over 7% y-o-y. Foreign brokerage houses and portfolio managers expect it to touch Rs 500 in the next two years. Adani Ports stock is a good investment.

 

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