Adani Ports achieves record cargo volumes in October: Will stock prices follow suit?

Adani Ports and Special Economic Zone Ltd (APSEZ), a prominent integrated transport utility in India and a member of the diversified Adani Group, achieved a remarkable milestone in October 2023 by handling a total cargo of 37 million metric tons. This represents a substantial YoY growth of 48%.

Interestingly, this is the first time in the company’s history that the combined cargo volume of its Indian port portfolio exceeded 35 MMT, reaching an impressive 36 MMT, signifying a robust YoY growth of 43%. Additionally, APSEZ’s Haifa Port in Israel handled more than 1.1 MMT of cargo in October, slightly outperforming its average cargo volume over the past six months.

Looking at the performance in the initial seven months of FY24 (April to October 2023), APSEZ managed an impressive total cargo throughput of 240 MMT, reflecting a YoY growth of 18%. Within India, their ports experienced a commendable 15% YoY volume growth.

During the initial seven months of FY24 (April to October 2023), Adani Ports and Special Economic Zone Ltd (APSEZ) demonstrated substantial and impressive growth in its cargo handling operations. The three major cargo categories, namely dry bulk, liquids, and containers, all witnessed remarkable double-digit YoY growth. Notably, the total number of containers managed by APSEZ in India surged to 5.5 million TEUs, reflecting a robust 13% YoY increase, with Mundra Port alone accounting for 4.2 million TEUs.

Dry bulk cargo volumes experienced a significant 14% YoY growth, with iron ore volumes leading the way with an astonishing 260% increase, alongside a 13% growth in coal volumes. The category of liquids and gas experienced an impressive 20% YoY increase.

In addition, the company’s logistics division has achieved an outstanding performance, demonstrating a remarkable 24% YoY increase in rail TEUs (Twenty-Foot Equivalent Units). This contributed to the total container volumes managed during the initial seven months, reaching approximately 328,000 TEUs. Furthermore, the bulk cargo volumes experienced substantial growth, with a significant 43% YoY increase, translating to the handling of approximately 10.6 MMTs of cargo.

However, this impressive growth has not been reflected in the company’s stock performance over the past year. While the BSE Sensex index generated a positive return of 5.91% during the same period, the shares of the company recorded a negative return of 4.3%.

Despite this, it’s worth noting that today the stock is trading in positive territory. At the beginning of the day, the stock opened at Rs 780 per share, reaching intraday highs and lows of Rs 798.80 and 777.35, respectively. As of the time of writing this article, the stock is trading at Rs 796.80 per share, representing a gain of 2.93% from its previous day’s closing price of Rs 774.15 per share on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.