Adani Ports & SEZ Ltd. Share Price:

In India, the foremost player in the integrated logistics sector and the largest port operator is Adani Ports and Special Economic Zone Limited. It has ten ports to streamline its logistical operations and terminals placed strategically throughout India's coastline. The primary port among these is the Mundra Port - the most significant commercial port of India. These ports and terminals account for more than one-fifth of India's port capacity. Adani Ports has also got three inland container depots and a well-established end-to-end transportation network through railways and roadways to ensure high operational efficiency.

History of the Company:

Adani Ports and Special Economic Zone Ltd (APSEZ) is a significant part of the Adani Group, one of the largest conglomerates in India. In 1998, APSEZ initially started as Gujarat Adani Port Limited (GAPL). The first projects as GAPL were to build a private port at Mundra. In 2001, the company commenced its business, and after two years, Mundra Special Economic Zone was established. The Adani Ports has expanded on to build ports and terminals in other parts of the country like Visakhapatnam, Dahej, Dhamra, Hazira, Kandla, over the years.

The company's name was changed in 2006 from GAPL to Mundra Port and SEZ Ltd for reflecting the core business of Adani. In 2007, the company went public when it came out with its first initial public offering (IPO) and subsequently the shares were listed on the National Stock Exchange and Bombay Stock Exchange.

Board of Directors:

Gautam Adani - MD and Chairman

Mr. Adani founded the Adani Group. He has spent around 30 years in this sector, and under his leadership, the Adani Group became a premier name in various crucial diversifications, such as integrated logistics, energy, and resources. It had been possible due to Mr. Adani. He strived hard to make the APSEZ as one of the substantial entities and became responsible for building the robust infrastructure of logistics in India.

Karan Adani-The Director

Mr. Karan Adani started his career with Adani Ports after understanding the inputs and outputs of the company's operations at Mundra port. Since 2009, he has been an essential part of the company and over the years has worked in different capacities. Currently, he is responsible for the strategic development of the group and looks after multiple operations. He has obtained a degree in economics from Purdue University, U.S.A.

Recent Performance of the Company:

The operating income of the company grew by 22% from last year which is Rs.2,689 crore. Considering the same parameter over the Fiscal Year 17 and Fiscal Year18, the revenue of the business of APSEZ Limited grew to Rs.8,140 crore, showing a growth of 31% from last year.

The constant growth of all the verticals has been reported by the company. The revenue of the organization from port operations has been increased by roughly Rs.250 crores, which shows a 15% growth over the third quarter of FY17. The earnings from SEZ operations has been doubled to Rs.402 crores in the third quarter of FY18 over the same quarter in last year.

The amount of cargo managed by Adani Port was increased over the third quarter of Fiscal 2017 to 48 million metric tonnes by 16%, and over the September quarter of Fiscal 2018 by 11%.

The APSEZ has exceeded all the other major ports in the country regarding container volumes. It has reported an incredible 29% growth in the fiscal, where as the other ports shown an 8% growth last year.

Why can you consider to invest in Adani Ports?

For more than two decades the Adani Ports has grown to become the largest private port operator of India. Over the year, it has performed consistently and has generated consistent profits. It will be playing a crucial role in expanding the economy of the country.

As of March 2018, the valuation of the stock is quite cheap in comparison to its peers in the same sector is a leading logistics player in the market. The net profit of the company is the highest in the industry. Likewise, the P/E ratio of APSEZ is also less when compared to its peers.

The Adani Ports is considering to boost their cargo volumes and containers operations via expansion at Dhamra and Kattupalli ports and also about beginning containers operations at Ennore.

For a long-term perspective, investing in Adani Ports stocks could be a good idea. Though before investing, it is advisable to research thoroughly.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.