Adani Ports shares rebound 86% from 52-week low; can they hit four-digit mark? – Business Today

Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) shares have staged a strong rebound from their 52-week low hit in February this year. The stock, which tanked along with other Adani Group shares after the allegations from Hindenburg Research report on January 24, 2023, has recovered over 86% till date. Adani Ports shares ended at Rs 736.40 in the last trading session, a recovery of 86.45% from the 52-week low of Rs 394.95 hit on February 3, 2023.
The stock, which stood at Rs 760.85 on January 24 , crashed 48% in just seven trading sessions. Before the crash, the stock hit a 52-week high of Rs 987.90 on September 20, 2022.
The roller-coaster ride the Adani Ports stock has seen is likely to continue in the near future.
Global brokerage firm Nomura expects Adani Ports shares to reach Rs 1,025 .It has assigned a ‘buy’ rating on the stock as it finds results were operationally better than estimates.
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“Management highlighted focus on deleveraging and minimum share pledges by FY24 and the company sees strong growth in logistics volumes, which may be a risk for CONCOR. It expects strong growth of 20-22 per cent in container volumes in logistics,” said Nomura.
However, CLSA’s target price of Rs 878 on the Adani Ports stock is not that optimistic compared to Nomura’s.
CLSA has revised its target from Rs 792 stating that core ports and logistics EBITDA rose 35 per cent YoY and the company consolidated its hold over the business by consummating many acquisitions.
Ports traffic performed well with FY23 traffic, up 9 per cent YoY and the company is getting ready for its next leg of growth, it said. “Its $4 billion forex debt led to an MTM hit and it exited Myanmar,” CLSA said.
Another brokerage Phillip Capital has revised its target to Rs 930 from Rs 950 earlier. It has maintained a ‘buy rating on the stock.
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“Adani Ports reported a decent set of numbers, broadly in-line with expectations but volumes may impact in the short term over global geo-political developments and economic slowdown along with margin pressure due to increased mix from international operations. We continue to view it as an excellent way to play the economic recovery cycle,” Phillip Capital said.
On Friday, the Adani Ports stock ended 0.56% higher at Rs 736.40 against the previous close of Rs 732.30 on BSE.
Adani Ports shares have lost 1.58 per cent in one year and fallen 10 per cent since the beginning of this year. Market cap of the firm rose to Rs 1.59 lakh crore on BSE. Total 4.32 lakh shares of the firm changed hands amounting to a turnover of Rs 31.91 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Adani Ports stands at 63.2, signaling it’s trading neither in the overbought nor in the oversold zone. Adani Ports stock has a one-year beta of 1.7, indicating very high volatility during the period. Adani Ports shares stand higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
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