⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ADANIPORTS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | ADANIPORTS | Market Cap | 3,52,763 Cr. | Current Price | 1,531 ₹ | High / Low | 1,549 ₹ |
| Stock P/E | 177 | Book Value | 130 ₹ | Dividend Yield | 0.46 % | ROCE | 8.85 % |
| ROE | 9.73 % | Face Value | 2.00 ₹ | DMA 50 | 1,442 ₹ | DMA 200 | 1,403 ₹ |
| Chg in FII Hold | -0.51 % | Chg in DII Hold | -1.14 % | PAT Qtr | 336 Cr. | PAT Prev Qtr | 449 Cr. |
| RSI | 61.1 | MACD | -11.3 | Volume | 1,24,13,759 | Avg Vol 1Wk | 46,36,556 |
| Low price | 1,036 ₹ | High price | 1,549 ₹ | PEG Ratio | 2.57 | Debt to equity | 1.92 |
| 52w Index | 96.5 % | Qtr Profit Var | -17.8 % | EPS | 8.90 ₹ | Industry PE | 23.4 |
📊 Core Financials
- Revenue & Profitability: PAT declined from 449 Cr. to 336 Cr. (–17.8% variance), showing earnings pressure.
- Margins: ROE at 9.73% and ROCE at 8.85% are weak, reflecting poor efficiency.
- Debt: Debt-to-equity ratio of 1.92 indicates high leverage, adding financial risk.
- Cash Flow: Profitability is inconsistent, raising sustainability concerns.
💹 Valuation Indicators
- P/E Ratio: 177 vs. industry average of 23.4 — extremely overvalued.
- P/B Ratio: Current price (₹1,531) vs. book value (₹130) → ~11.8x, premium valuation.
- PEG Ratio: 2.57, suggesting growth is priced at a steep premium.
- Intrinsic Value: Valuation appears stretched given weak profitability and high debt.
🏢 Business Model & Competitive Advantage
- Adani Ports operates India’s largest private port network, handling cargo and logistics across multiple locations.
- Competitive advantage lies in scale, strategic port locations, and integration with logistics infrastructure.
📈 Technicals & Entry Zone
- DMA 50 (₹1,442) and DMA 200 (₹1,403) are below current price, showing strong upward momentum.
- RSI at 61.1 indicates mildly overbought territory; MACD negative suggests short-term weakness.
- Entry Zone: Attractive only on dips near ₹1,400–1,450 for long-term investors.
- Long-Term Holding: Risky at current valuations; suitable only if earnings stabilize and debt is reduced.
✅ Positive
- Strong market capitalization (₹3,52,763 Cr.) ensures stability.
- Strategic positioning as India’s largest private port operator.
- DMA support levels indicate long-term bullish trend.
⚠️ Limitation
- Extremely high P/E ratio (177) compared to industry average (23.4).
- Weak ROE (9.73%) and ROCE (8.85%).
- High debt-to-equity ratio (1.92) increases financial risk.
📉 Company Negative News
- Quarterly PAT declined (–17.8%), showing earnings pressure.
- FII holdings decreased (–0.51%) and DII holdings decreased (–1.14%), showing reduced institutional confidence.
📈 Company Positive News
- EPS at ₹8.90 reflects earnings base despite volatility.
- Strong trading volumes indicate liquidity and investor interest.
🏭 Industry
- Port and logistics sector benefits from rising trade volumes and infrastructure growth in India.
- Industry average P/E (23.4) highlights Adani Ports’ extreme overvaluation.
🔎 Conclusion
- Adani Ports shows scale and strategic importance but faces declining profitability and stretched valuations.
- High debt and weak return ratios make current levels risky.
- Recommendation: Avoid fresh entry at current price; accumulate only on dips near ₹1,400–1,450. Long-term holding viable only if profitability stabilizes and ROE/ROCE improve.