After sliding over 11 per cent on Wednesday, shares of Adani Ports and Special Economic Zone (APSEZ) slipped over 4 per cent on BSE on Thursday. The scrip is under pressure after the company reported lower-than-estimated results for the quarter ended March 2016.
Post Q4 results, Jefferies cut target price for APSEZ shares to Rs 225 from Rs 250 citing slowdown in core port earnings growth will cap upside in Adani Port. However, the brokerage house maintains “Hold” rating on APSEZ shares.
The company on Tuesday reported a 38 per cent jump in its consolidated net profit to Rs 914.06 core for the March quarter on account of rise in income. APSEZ had posted a net profit of Rs 660.73 crore in the corresponding quarter of the 2014-15 fiscal.
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Brokerage Elara Capital said the company’s revenue, operating profit and net income were all below its estimates after adjusting for stake sale in Mundra Solar Tech Park. The brokerage house has ‘Accumulate’ rating on Adani with target price of Rs 271.
Japanese brokerage firm Nomura in a research note said, “APSEZ results yet again highlight Adani Port’s story of rising debt at the cost of unwarranted loans and advances.”
The brokerage house adviced to avoid stock for now and wait for clarity and also for improvement in the financials of its group companies, specially Adani Power.
Adani Ports shares closed 4.33 per cent down at Rs 198.65. Sensex closed 160.48 points up at 25,262.
(With inputs from Reuters)