Buy Adani Port and SEZ; target of Rs 485: Kotak Securities
Kotak Securities’ research report on Adani Port and SEZ
(1) Strong growth in volumes across segments backed by expansion of capacity; (2) healthy contribution from subsidiary ports; (3) healthy consolidated EBITDA margin, (4) higher non-recurring income (SEZ) and rationalization of interest cost would drive the performance of APSEZ in FY19. The company’s good FY19 volume growth guidance, led by commissioning of new ports, new cargo sourcing and market share gains, is a positive.Stake dilution by the promoters of 4% gives us more comfort for addressing group level debt servicing.
Maintain BUY with an unchanged TP of Rs 485.
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