The biggest decline of two weeks in shares of Adani Ports before the $ 2.5 billion deal

Adani Ports: Today, on 21 April, Monday, the stock market saw a decline of up to 4 percent in the stocks of Adani Ports and Special Economic Zone during early trade, which is the fastest decline since April 7. This happened when the company said last week that it was going to acquire a coal terminal in Australia.

The company said that it would buy an Australian deep-waters coal export facility at an enterprise value of about $ 2.54 billion (about 21,6000 crores). This will increase the company’s presence in the global market. Whereas brokerage firm Nuwama Wealth Management says that purchasing Abbott Point Port can cause a decline in the company’s earnings per share.

Adani Port announces non -cash deal

At 10:25 am, the shares of Adani Ports were trading at Rs 1,225 per share with a decline of 2.72 percent. The country’s largest private port operator on Thursday announced the non -cash deal of a coal export terminal in Australia. Under this deal, the Adani Port Carmicol Rail and Port Singapore Holdings will issue 143.8 million shares to buy Abbott Point Port Holdings. Carmail Rail and Port Singapore Holdings owe North Queenland Export Terminal.

Strong growth capacity in this terminal

The North Queensland Export Terminal on the East Coast of Australia is a deep water coal export terminal, which is 50 million tonnes annually. Adani Ports earlier bought it in 2011, but in 2013 it was sold to the Adani family for $ 2 billion so that the company could focus more on its core operations in the country. Adani Ports CEO Ashwini Gupta said that this terminal on the East Coast of Australia has a strong growth capacity. In the coming time, it will also emerge as a major center of hydrogen exports.

Shares of Adani Ports received this rating

Meanwhile, Motilal Oswal maintained his ‘buy’ ratings of Adani Ports with a target price of Rs 1,560. According to this brokerage firm, the company is targeting Higher Contracted Capacity and Operational Synergy, which is expected to boost the Ebitda, so the brokerage firm is expected to increase the cargo volume during financial year 24 – 27. This is expected to grow 14/16 / 21 percent CAGR growth in Revenue / Ebitda / PAT respectively.

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