Adani ports: stock analysis
Stock analysis: Adani Ports
This article is about Adani Ports.
Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure, port services and related infrastructure development. It has linked multi product Special Economic Zone and related infrastructure contiguous to Port at Mundra.
Market capitalization and stock price history
Adani Ports has a market capitalization of 1.09 trillion, at the time of making this video.
Its stock price made an all time high of rupees 517 on 08 January 2021.
In past five years, the stock price made a low of rupees 171 on 19 May 2016.
Stock returns
This stock gave compounded annual growth of 30 percentage over past one year, 6 percentage over past three years, and 16 percentage over past five years.
Revenue and profits
In past 12 months, Adani Ports had a revenue of rupees 109.4 billion, and a gross profit of rupees 74.0 billion.
As compared to previous fiscal year, in the past 12 months, it has seen a revenue decline of 3.7%.
On 31/3/2020, Adani Ports reported a total revenue of rupees 113.6 billion, and has seen a revenue growth of 5.4% from the previous year.
The company reported an EBITDA of rupees 78.3 billion.
Fundamental analysis
Now let us look at some key financial ratios to guage how good or bad this stock is.
Its "beta" value, which is a measure of volatility of stock, is 1.17.
This means the stock moves with more volatility than the market. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns.
Based on the last twelve months, the price to earnings ratio is 28.46.
The price to earnings ratio indicates whether the stock is undervalued or overvalued.
Based on the last twelve months, the earnings per share value is 18.86.
Now, we will compare some key financial ratios with the top 1000 NSE stocks.
For this purpose, we divide the distribution of these key indicators in to four parts or "quartiles".
Quartile region is obtained by dividing all the stocks in 4 buckets, so that each bucket contain same number of stocks.
As compared to top 1000 stocks in NSE, Adani Ports has its beta value in the third quartile.
This means the stock exhibits high volatility.
Adani Ports has earnings per share of 18.86, which is higher than 66% of top 1000 NSE stocks.
The earnings per share value is good.
Earnings per share is a company's net profit divided by the number of outstanding shares. This is a wildly used metric to estimate corporate value.
Adani Ports has price to earnings ratio of 28.46, which is higher than 42% of top 1000 NSE stocks.
The price to earnings ratio is in the third quartile, this means the company stock may be overvalued.
A high price to earnings ratio may also mean that investors are expecting high growth rates in the future.
Price to earnings ratio measures its current share price relative to its per-share earnings.
Adani Ports has price to book value ratio of 3.92, which is higher than 68% of top 1000 NSE stocks.
The price to book value ratio is in the third quartile, this means the stock may be overvalued.
The price-to-book ratio compares a company's market value to its book value. Book value is net assets of the company.
This ratio should be looked at in conjunction with return on equity ratio. A low return on equity combined with high price to book ratio means stock is overvalued.
Adani Ports has return on equity value of 14.43%, which is higher than 64% of top 1000 NSE stocks.
The return on equity for this stock is in the third quartile, which is good.
The return on equity is calculated by taking company's net earnings after taxes, subtracting preferred dividends, and dividing by the total equity.
Adani Ports has debt to equity ratio of 127.08, which is higher than 73% of top 1000 NSE stocks.
The debt to equity ratio for this stock is in the fourth quartile, which is bad.
A debt to equity ratio is company's total liabilities divided by shareholder's equity, and lower value of this ratio is preferred.
This ratio is a measure of the degree to which a company is financing its operations through debt versus wholly-owned funds.
A higher value of this ratio tend to indicate higher risk to the investors.
Adani Ports has operating cash flow of 72.5 billion in the past 12 months, which is higher than 89% of top 1000 NSE stocks.
The operating cash flow for this stock is in the fourth quartile, which is very good.
Adani Ports has levered free cash flow of -28.6 billion in the past 12 months, which is higher than 2% of top 1000 NSE stocks.
The operating cash flow for this stock is in the first quartile, which is bad.
Adani Ports has payout ratio of 16.95%, which is higher than 55% of top 1000 NSE stocks.
The payout ratio of this stock is in the third quartile, which is good.
The dividend payout ratio provides an indication of how much money a company is returning to shareholders versus how much it is keeping on hand to reinvest in growth, pay off debt, or add to cash reserves.
Income Statement
The company reported an EBITDA of rupees 78.3 billion in year 2020, which is 1% less than the EBITDA from the previous year.
The company showcased earnings per share of 18.4 in year 2020, which is 5% less than the EPS from the previous year.
Balance sheet
Adani Ports has shown year on year increase in stockholder's equity by 4.4% in year 2020.
This stock showed year on year increase in stockholder's equity by 16.5% in year 2019.
This stock showed year on year increase in stockholder's equity by 20.2% in year 2018.
Cash flow
Adani Ports has free cash flow of rupees nan in the past twelve months.
The free cash flow for the year 2020 was rupees 37.8 billion.
Fundamental analysis
Here you can see statistics related to number of shares.
62.40% of shares are help by insiders
23.53% of shares are help by institutions
Adani Ports is at position 26 in terms of market capitalization among the nifty 50 stocks.
Adani Ports is at position 46 in terms of annual revenue among the nifty 50 stocks.
Adani Ports is at position 45 in terms of free cash flow among the nifty 50 stocks.
Here, we presented a very simplified assessment of fundamental indicators. We categorized the performance on each indicator by comparing it with top 1000 NSE stocks.
On your side, go thoroughly through the financial data before deciding on investing in this stock.
