ADANIPORTS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

Here’s a detailed analysis of Adani Ports and Special Economic Zone Ltd (ADANIPORTS)

🧾 Core Financials

Profitability & Growth

Quarterly PAT declined from ₹700 Cr to ₹505 Cr — a 34.9% drop, signaling margin pressure or one-off impacts.

EPS: ₹10.1 — modest for a company of this scale.

ROE: 9.73% and ROCE: 8.85% — below optimal, suggesting moderate capital efficiency.

Debt & Liquidity

Debt-to-equity: 1.71 — relatively high, typical for infrastructure-heavy businesses.

Dividend Yield: 0.50% — modest, but consistent.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 140 25.6 Extremely overvalued

P/B Ratio ~10.1 ~3.5 High premium to book value

PEG Ratio 2.02 ~1 Price exceeds growth potential

Intrinsic Value ~₹1,100–₹1,200 — Overpriced vs fundamentals

The stock trades at a steep valuation, driven more by strategic positioning and future growth expectations than current earnings.

🏢 Business Model & Competitive Edge

Core Operations: Port development, logistics, and SEZ operations across India.

Strengths

Largest commercial port operator in India with diversified cargo mix.

Strategic assets in key coastal locations and integrated logistics capabilities.

Rising DII interest (+0.42%) suggests domestic institutional confidence.

Risks

High valuation and earnings volatility.

FII inflows remain muted (+0.10%), possibly due to governance or pricing concerns.

📉 Technical & Entry Zone

Current Price: ₹1,412

DMA 50/200: ₹1,370 / ₹1,323 — trading above key averages.

RSI: 65.0 — approaching overbought.

MACD: 12.6 — bullish momentum.

Suggested Entry Zone: ₹1,200–₹1,300 range, ideally near DMA 200 or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to India’s trade and logistics growth.

Avoid fresh entry at current levels unless valuation cools.

Ideal for long-term only if

Earnings growth resumes and ROE improves above 12%.

Valuation normalizes below P/E 60 and PEG < 1.5.

Would you like a peer comparison with Gujarat Pipavav Port or a breakdown of Adani Ports’ cargo volume trends?

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