Edelweiss Securities notes that Adani Ports
sprung a positive surprise during the quarter under review with the stronger-than-expected realisations on the back of 2.5 per cent tariff hike and favourable cargo mix, leading to 70 per cent port margins.
"After a dampening 27 per cent YoY dip in volume in Q1, July marked 6 per cent YoY growth, which suggests evacuation bottlenecks have ebbed. APSEZ is sharpening its focus on cargo/service lines/customer diversification (added one each in Q1); cost-optimisation through efficiencies; and conserving cash," the brokerage said in a result review report.
Adding, "we continue to have a constructive view on APSEZ and believe that it is best placed to capitalise on growth (upon recovery) given its steady leadership, client rapport, and balance sheet heft."
It has retained a "BUY" rating on the stock with a sum-of-the-parts valuation (SoTP) based-target price of Rs 395.
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