Adani stocks: The shares of Adani Ports and Special Economic Zone (APSEZ) declined by 4 per cent on 21 April today. This is the biggest intraday decline in this stock since 7 April. The decline in the company’s shares came after the news that the company would buy a coal terminal in Australia. The company said last week that it would buy an Australian deep water coal export terminal at an enterprise price of about $ 2.54 billion (about Rs 21,600). This will help the company to increase its presence globally.
However, brokerage firm Nuwama Wealth Management says that the deal may cause a decline in the company’s income (EPS). In addition, the deal also includes some non-effective assets and liabilities, which the company will acquire. The shares of Adani Ports were trading at Rs 1,225 at around 10.25 am.
Adani Ports said on Thursday, 17 April that it would buy an Australian coal terminal in a $ 2.4 billion non-cost deal. Under the deal, Adani Ports, Carmichel Rail and Port will acquire Abbott Point Point Holdings from Singapore Holdings, owned by North Queensland Export Terminal. The acquisition will be a complete share deal, under which Adani Ports will issue about 143.8 crore shares to Carmicol Rail and Port Singapore Holdings.
North Queensland Export Terminal (NQXT) is located on the east coast of Australia. It is a deep water coal export terminal with an annual capacity of 50 million tonnes. Adani Ports were first acquired by Adani Ports for $ 2 billion in 2011, but in 2013 it was sold to the Adani family so that the company could focus on its main operations in India.
Ashwini Gupta, Chief Executive Officer of Adani Ports, described the deal as a strategic step and said that the terminal has strong growth capacity. In addition, it can become an important center of green hydrogen exports in the future.
Brokerage firm Motilal Oswal has maintained a ‘purchase’ rating on the company’s shares and has set a target price of ₹ 1,560 for stock. Brokerage says that the company’s focus is on increasing contracted capacity and furthering operational coordination, which is expected to strengthen the EBITDA.
Brokerage estimates that the company’s cargo volume will grow from 10% CAGR between financial year 24 and FY 27, which will increase Revenue, EBITDA and PAT to CAGR of 14%, 16% and 21% respectively.
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