Adani Port up on JP Morgan upgrade

Wed Apr 18, 2012 12:42pm IST

A crane unloads coal from a ship at Dahej in Gujarat August 30, 2010. REUTERS/Amit Dave/Files

A crane unloads coal from a ship at Dahej in Gujarat August 30, 2010.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

REUTERS - Shares in Adani Ports and Special Economic Zone Ltd (APSE.NS), rose as much as 3.3 percent after brokerage JP Morgan upgraded the stock to overweight from neutral and raised its target price to 160 rupees from 145 rupees, citing expectations of robust earnings growth and strong performance at Mundra Port.

"We think Mundra Port is in a sweet spot over the next five years with spare capacities in high growth coal and container cargo segments," said JP Morgan in a note.

Consolidated annual compunded EPS is estimated at 35 pct over FY12-17 with average 26-27 pct return on equity, which merits a "valuation premium," said the investment bank.

The bank also says a scalable non-major port alternative to Mundra on the west coast is still elusive.

Adani Port has underperformed Nifty .NSEI in 2012, rising 10 percent versus 15.3 percent gains in the broader index.

Adani Port was last up 2 percent at 132.20 rupees.

(Reporting by Abhishek Vishnoi; Editing by Subhadip Sircar)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage