RESULT UPDATE

ADANI PORTS AND SEZ

Strong quarter; encouraging guidance
ECONOMIC ZONE
India Equity Research| Infrastructure - Ports
COMPANYNAME
Adani Ports & SEZ’s (APSEZ) Q4FY18 revenues were 20% ahead of EDELWEISS 4D RATINGS
consensus mainly due to higher than expected SEZ revenues. Three key
Absolute Rating BUY
highlights were: 1) FCF for FY18 at INR12.5bn missed our estimate of Rating Relative to Sector Outperform
INR19bn due to higher working capital requirement of INR15.7bn on Risk Rating Relative to Sector Low
account of CT3 extension and CT4 port development (which should prop Sector Relative to Market Overweight
up FY19 FCF); 2) management aims to achieve 200MT cargo in FY19 (ex-
Adani Power 10MT volumes) in line with our estimates through broad
based growth across ports; 3)announcement of new dividend policy MARKET DATA (R: APSE.BO, B: ADSEZ IN)
which links the dividend pay-out ratio with max 15% PAT (at least 40% CMP : INR 397
Target Price : INR 465
higher pay out), could bolster shareholders’ confidence in APSEZ. We
52-week range (INR) : 452 / 324
believe APSEZ’s strong fundamentals will help accelerate volume growth
Share in issue (mn) : 2,071.0
and cement strategic customer relations. Maintain ‘BUY’. M cap (INR bn/USD mn) : 822 / 12,460
Avg. Daily Vol.BSE/NSE(‘000) : 3,972.1
SEZ biz the main driver for revenues; port volumes healthy
APSEZ reported 43% growth in revenue mainly driven by 20x growth in the SEZ SHARE HOLDING PATTERN (%)
business on receipt of development proceeds from CT3 extension and CT4 terminal, Current Q3FY18 Q2FY18
which is fully concluded now. For FY18, SEZ business reported INR24bn revenue (3.5x Promoters * 65.8 65.8 63.3
from FY17), but we expect the same to get moderated going forward. Port business MF's, FI's & BK’s 11.9 11.9 10.3
reported volume of 46MT (6% growth YoY) supported by container volumes. Logistics FII's 18.3 18.3 22.0
business reverted to growth track, registering 13% growth. EBITDA at INR19.3bn (ex- Others 4.0 4.0 4.3
forex loss) registered 40% growth. Port margins were healthy at ~70% and * Promoters pledged shares : NIL
(% of share in issue)
management expects the same to improve to 71% in FY19.

PRICE PERFORMANCE (%)

Training focus on growth & efficiencies; FCF trajectory to improve
Stock Nifty #N/A
APSEZ’s FY19 strategy is well oriented for growth. It focuses on developing a culture of
efficiency improvement through better asset utilisation, higher cargo growth through 1 month 8.4 4.2 (1.0)
long term contracts-cargo diversification and new tie ups with shipping lines. The 3 months (5.0) (0.8) (5.0)
company targets to provide full scale logistics solution in an asset light manner. 12 months 21.2 14.7 2.7
Management is targeting INR75bn capex over next three years with FCF improving to
~INR20bn. We believe this is conservative and APSEZ could see FCF of INR25bn in FY19.

Outlook and valuations: On growth trajectory; maintain ‘BUY’

We are sanguine on APSEZ’s long-term growth prospects led by new businesses -
logistics, SEZ and expansion at ports. With the new dividend policy, at least a beginning
has been made that FCF belongs to shareholders. We maintain ‘BUY/SO’ with a revised
SoTP-based TP of INR465 (INR483 earlier) as we factor in higher risk-free rate of 7.25%.
Financials (Consolidated) (INR mn)
Year to March Q4FY18 Q4FY17 % change Q3FY18 % change FY18 FY19E FY20E
Net revenues 31,829 22,315 42.6 26,889 18.4 113,230 116,423 137,230
Swarnim Maheshwari
EBITDA 17,116 13,335 28.4 19,675 (13.0) 70,621 73,329 84,908 +91 22 4040 7418
Adj. Net profit 9,291 8,629 7.7 10,003 (7.1) 35,185 41,358 49,744 [email protected]
Dil. EPS (INR) 4.5 4.2 7.7 4.8 (7.1) 17.0 20.0 24.0
EV/EBITDA (x) 14.5 13.8 11.7
ROAE (%) 18.2 17.7 18.4 May 3, 2018
Edelweiss Research is also available on www.edelresearch.com,
Bloomberg EDEL <GO>, Thomson First Call, Reuters and Factset. Edelweiss Securities Limited
Infrastructure - Ports

Key takeaways from the analyst meet

 Guidance & Outlook: Looking at overall volumes of 200MT without Adani Power’s
10.5MT coal handling at Mundra

o Container: To grow 2x of pan-India container growth (expect industry container

volume to register growth of at least 10% in FY19)

o Cargo: To grow 1.5x of India cargo growth (expect industry cargo growth of 5.8%)

o Ports growth: Mundra would grow in high single digits, Hazira and Dahej 20%,
Kattupalli 25-30% and Dhamra 20-25%.

o Port margins: Port EBIDTA margins would improve from 70% to 71% in FY19
following change in cargo mix, operational efficiency and use of technology
o Capex of INR25bn would be incurred every year for the next three years

o FCF to increase to INR17.5-20bn in FY19 from INR12.5bn in FY18

SEZ business: Management mentioned it has clear visibility of INR45-50bn revenues over
next four-five years. For FY19, it expects SEZ revenues to be ~INR10bn with higher margins
(FY18 margins were lower due to higher proportion of capex related revenues).
Management indicated that LPG and LNG are two big avenues for the SEZ business.

Dedicated Freight Corridor: APSEZ mentioned that there is some delay in commissioning of
DFC and it expects DC to be connected to the Mundra port by mid-2020, which should be at
least two years prior to the connection with the JNPT port.

Diversion of cargo to continue: Management seemed unperturbed by the new PSA terminal
at JNPT and reiterated that it expects the diversion of cargo to continue. While Central India
cargo would go to Hazira, Northern India cargo would go to Mundra and Western
(Maharashtra) would go to JNPT. Moreover, shipping liners would continue to make at least
2port of calls in near future.

Logistics business: APSEZ has started construction for PFT’s in Baroda and Bengaluru, while
the land acquisition is in place for Panipat and Cochin. The company has placed order for 10
rakes under long term lease.

Currently, dollar revenues are 35% of overall revenues. The company has a commensurate
hedging policy in place which is long term (three-four years).

Cargo handled by JV terminal in FY18 was 2.5MT.

Performance of key businesses:

APSEZ at a glance: Healthy overall cargo volume growth of 7% YoY to 180MMTPA as against
an all-India growth of 4%. Revenue grew 34% to ~ INR113bn, while EBITDA surged 32% to
INR72bn. EBITDA margin stood at 64%, excluding forex gain/loss.

This was on the backdrop of strong container volume growth of 20% in ports business,
crossing 5mn TEU’s in FY18. Ports business EBITDA margin improved 100bps to 70%, while
revenue jumped 7% to INR739bn and EBITDA improved 10% to INR52bn, adjusting for forex
gain/loss.

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 Adani Ports and Special Economic Zone

1) Mundra port: During Q4FY18, Mundra cargo volume grew by 4% to 30MTPA. FY18
volume grew by 7% to 121MTPA, revenue grew 34% to INR63.5bn and EBITDA grew
27% to INR45bn. This was despite lower off take by HMEL- Bathinda pipeline and APL to
the tune of 8MTPA for whole FY18. This is largely attributable to strong container
growth of 18% YoY and handling more than 4mm TEU’s at Mundra. This cements
Mundra’s position as the container hub of the West with strong operational efficiency.
CT-4 terminal became operational. Management expects high single digit growth in
volumes for FY19.

2) Dhamra Port: Dhamra continued to face issues with limited rake availability and
shutdown due to expansion and mechanisation activities resulting in flattish volume
off-take at 21.45MTPA for FY18 as against 21.41MTPA for FY17. Revenue slipped 17%
to INR9.3bn and EBITDA slipped 29% to INR5.36bn YoY for FY18. EBITDA margin
dropped to 58% in FY18 from 67% in FY17. With Phase-1 expansion complete and rake
issue getting resolved management expects Dhamra to record strong volume growth
upwards of 20% in FY19. Entire 35MTPA capacity is operational.

3) Hazira Port: For Q4FY18, the port reported 12% QoQ volume growth with handling of
additional commodities like Para Xylene, Orhto Xylene, etc. Cargo volume grew 10%
YoY to 16.87MTPA. Container volume particularly grew 21% YoY handling 0.5mm TEU’s.
EBITDA margin came in at 72%.

4) Dahej Port: Lower coal import impacted Q4FY18 with 7% volume slippage. However,
overall volume grew 10% YoY to ~7MTPA for FY18. Revenue grew 3% to INR33.5 mm
while EBITDA was largely flattish at INR 2.2bn. EBITDA margin came in at 66%.

5) Kattupalli Port: Volume grew 37% YoY for FY18 and 47% QoQ for Q4FY18 .

Table 1: SOTP valuation

Method CoE Value Stake Value of stake Price per % age of SOTP
(%) (INR mn) (%) (INR mn) share (INR) (%)
Mundra Port DCFE 11.1 413,572 100.0 413,572 200 43.0
CT3/4/5…. DCFE 11.3 96,531 50.0 48,266 23 5.0
SEZ DCFE 11.1 86,028 100.0 86,028 42 8.9
Dahej Port DCFE 11.3 26,230 74.0 19,410 9 2.0
Mormugao Terminal DCFE 11.3 1,321 74.0 978 0 0.1
Hazira Port DCFE 11.1 105,754 100.0 105,754 51 11.0
Ennore Cont. Terminal DCFE 11.3 (1,850) 100.0 (1,850) (1) (0.2)
Kandla Bulk Terminal DCFE 11.3 3,345 74.0 2,476 1 0.3
Dhamra Port DCFE 11.1 165,879 100.0 165,879 80 17.2
Katupalli Port DCFE 11.1 32,123 100.0 32,123 16 3.3
ALL P/E 26x 35,524 100.0 35,524 17 3.7
Vizhinjam port 2x Equity 18,750 100.0 18,750 9
Cash & Investments BV FY18 29,676 100.0 29,676 15 3.3
Total 1,012,882 956,583 465 100.0
Source: Edelweiss research

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 Infrastructure - Ports

Financial snapshot (INR mn)

Year to March Q4FY18 Q4FY17 % change Q3FY18 % change FY18 FY19E FY20E
Net revenues 31,829 22,315 42.6 26,889 18.4 113,230 116,423 137,230
Cost of operations 9,669 6,067 59.4 6,839 41.4 33,151 33,946 42,218
Staff costs 1,196 1,135 5.3 1,070 11.7 4,473 3,997 4,380
Other operating expenses 3,848 1,778 116.4 (695) (653.6) 4,984 5,150 5,724
Total expenditure 14,713 8,979 63.8 7,214 103.9 42,608 43,093 52,322
EBITDA 17,116 13,335 28.4 19,675 (13.0) 70,621 73,329 84,908
Depreciation 2,989 2,959 1.0 2,937 1.8 11,884 13,950 15,259
EBIT 14,127 10,376 36.1 16,738 (15.6) 58,738 59,379 69,649
Other income 3,044 3,233 (5.8) 2,360 29.0 10,109 9,548 9,167
Interest 3,919 4,918 (20.3) 3,185 23.0 14,954 13,465 12,163
Add: Exceptional items (1,532) (100.0) (1,552)
Profit before tax 13,252 8,691 52.5 14,381 (7.9) 52,341 55,462 66,652
Provision for taxes 3,961 119 3,239.7 4,378 (9.5) 15,442 14,975 17,996
Minority interest - (28) (100.0) - 163 (868) (1,085)
Associate profit share - 28 (100.0) - - - -
Reported net profit 9,291 8,629 7.7 10,003 (7.1) 36,737 41,358 49,744
Adjustments - - - 1,552 - -
Adjusted Profit 9,291 8,629 7.7 10,003 (7.1) 35,185 41,358 49,744
Diluted shares (mn) 2,071 2,071 2,071 2,071 2,071 2,071
Adjusted Diluted EPS 4.5 4.2 7.7 4.8 (7.1) 17.0 20.0 24.0

As a % of sales
Direct costs 30.4 27.2 25.4 29.3 29.2 30.8
Employee cost 3.8 5.1 4.0 4.0 3.4 3.2
Other operating expenses 12.1 8.0 (2.6) 4.4 4.4 4.2
EBITDA 53.8 59.8 73.2 62.4 63.0 61.9
Reported net profit 29.2 38.7 37.2 32.4 35.5 36.2
Tax rate 29.9 1.4 30.4 29.5 27.0 27.0

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 Adani Ports and Special Economic Zone

Company Description
APSEZ is the seamless integration of 3 verticals consisting of Ports, Logistics and Special
Economic Zone. The company has pan India presence in ten locations (nine are operational)
with the flagship Mundra port in the Gulf of Kachchh, also India’s largest commercial port..
APSEZ has both the capacity and ability to handle multiple cargo at its ports. APSEZ has a
large land bank of 8,481 hectares of contiguous land at Mundra, with requisite approvals
and clearances in place and provides a diversified revenue stream. APSEZ has been investing
in tightly integrated assets, with an objective of reducing bottlenecks in the overall logistics
value chain - saving time and cost for its customer.

Investment Theme
Sound business fundamentals
Sustainable market share gains at Mundra (Containers particularly), expansion of LPG, LNG
terminals at Mundra& Dhamra Port and upcoming Vizhingham port is likely to keep volume
growth ticking in double digits for the next 3-4 years. Further, we see Dhamra port as the
next Mundra Port (aligning to tremendous potential in Bulk Cargo and Gs potential ).

APSEZ to benefit from consolidation of volumes: As shipping lines deploy larger vessels and
consolidate routes, the focus will move to ports with O&D demand over transhipment. Thus
this consolidation will help APSEZ given its scale, pan India presence and existing strong
relationships with container liner companies.

Logistics, the dark horse - 70% CAGR over next three-four years
Leveraging its relationships with shipping liners and its ability to offer end-to-end solutions
can make ALL’s business sizable (targeting 5x revenues over next four years). Management
aims to achieve this with an asset light model and roadmap including Railway transportation,
Private Freight terminals, trucking and Warehousing.

Key Risks
Uncertainty in traffic at ports: Since cargo at ports is contingent on international trade, any
slowdown in it could affect Mundra Port as well.

Regulatory changes regarding SEZs: The existing SEZ policies and benefits outlined by the
government to promote exports are relatively new and are being continuously reviewed.
Any changes in the form of reversal of current tax benefits to units under the SEZ umbrella
will significantly undermine incentives for industries to setup units in the SEZ, hampering
current plans of land sale. Land parcel sale at the SEZ is yet to pick up.

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 Infrastructure - Ports

Financial Statements
Key Assumptions Income statement (INR mn)
Year to March FY17 FY18 FY19E FY20E Year to March FY17 FY18 FY19E FY20E
Macro Net revenue 84,394 113,230 116,423 137,230
GDP(Y-o-Y %) 6.6 6.5 7.1 7.6 Cost of Operations 18,905 33,151 33,946 42,218
Inflation (Avg) 4.5 3.6 4.5 5.0 Other operating expenses 4,736 4,984 5,150 5,724
Repo rate (exit rate) 6.3 6.0 6.0 6.5 Employee costs 3,831 4,473 3,997 4,380
USD/INR (Avg) 67.1 64.5 65.0 66.0 Total operating expenses 27,472 42,608 43,093 52,322
Company EBITDA 56,921 70,621 73,329 84,908
Mundra cargo (MT) 114.2 121.4 132.5 141.8 Depreciation 11,602 11,884 13,950 15,259
Avg. realisation (INR/t) 336 392 398 403 EBIT 45,319 58,738 59,379 69,649
Avg realisation (INR/t) 526 520 520 551 Add: Other income 10,401.1 10,109.29 9,547.61 9,166.51
Capex (INR mn) 32,479 26,940 26,818 26,921 Less: Interest Expense 13,932 14,954 13,465 12,163
Net borrowings (INR mn) 206,410 198,654 191,680 175,606 Add: Exceptional items - (1,552) - -
Avg. Interest rate (%) 5.1 5.6 5.3 4.8 Profit Before Tax 41,789 52,341 55,462 66,652
Depreciation rate (%) 4.6 4.2 4.5 4.5 Less: Provision for Tax 2,866 15,442 14,975 17,996
Dividend payout (%) 6.9 11.3 15.0 15.0 Less: Minority Interest (100) 163 (868) (1,085)
Tax rate (%) 6.9 29.5 27.0 27.0 Associate profit share 93 - - -
Reported Profit 39,115 36,736 41,356 49,741
Exceptional Items - 1,552 - -
Adjusted Profit 39,115 35,184 41,356 49,741
Shares o /s (mn) 2,070 2,070 2,070 2,071
Adjusted Basic EPS 18.9 17.0 20.0 24.0
Diluted shares o/s (mn) 2,070 2,070 2,070 2,071
Adjusted Diluted EPS 18.9 17.0 20.0 24.0
Adjusted Cash EPS 24.5 22.7 26.7 31.4
Dividend per share (DPS) 1.3 2.0 3.0 3.6
Dividend Payout Ratio(%) 8.3 13.5 18.0 18.0

Common size metrics

Year to March FY17 FY18 FY19E FY20E
Operating expenses 32.6 37.6 37.0 38.1
Depreciation 13.7 10.5 12.0 11.1
Interest Expense 16.5 13.2 11.6 8.9
EBITDA margins 67.4 62.4 63.0 61.9
Net Profit margins 46.2 31.2 34.8 35.5

Growth ratios (%)

Year to March FY17 FY18 FY19E FY20E
Revenues 18.7 34.2 2.8 17.9
EBITDA 24.4 24.1 3.8 15.8
PBT 34.0 25.3 6.0 20.2
Adjusted Profit 35.0 (10.0) 17.5 20.3
EPS 35.0 (10.0) 17.5 20.2

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 Adani Ports and Special Economic Zone
Balance sheet (INR mn) Cash flow metrics
As on 31st March FY17 FY18 FY19E FY20E Year to March FY17 FY18 FY19E FY20E
Share capital 4,142 4,142 4,142 4,142 Operating cash flow 40,019 39,484 52,767 54,945
Reserves & Surplus 171,118 206,546 240,458 281,246 Investing cash flow (25,794) (16,831) (17,270) (17,755)
Shareholders' funds 175,260 210,688 244,600 285,388 Financing cash flow (13,247) (27,422) (36,265) (21,117)
Minority Interest 1,392 1,496 628 (458) Net cash Flow 978 (4,769) (768) 16,074
Short term borrowings 45,316 20,950 20,950 20,950 Capex (32,479) (25,578) (26,818) (26,921)
Long term borrowings 180,863 207,380 192,023 192,023 Dividend paid (7) (4,968) (7,444) (8,953)
Total Borrowings 226,178 228,330 212,973 212,973
Long Term Liabilities 10,620 12,320 12,320 12,320 Profitability and efficiency ratios
Def. Tax Liability (net) (17,759) (11,681) (11,681) (11,681) Year to March FY17 FY18 FY19E FY20E
Sources of funds 395,692 441,152 458,839 498,541 ROAE (%) 24.9 18.2 17.7 18.4
Gross Block 252,940 282,929 309,554 336,375 ROACE (%) 14.6 16.3 15.3 16.5
Net Block 165,693 184,441 245,366 256,928 Debtors Days 85 89 105 90
Capital work in progress 45,140 45,455 5,011 5,111 Payable Days 87 54 53 47
Intangible Assets 44,842 42,260 42,260 42,260 Cash Conversion Cycle 82 100 109 94
Total Fixed Assets 255,675 272,155 292,636 304,298 Current Ratio 7.8 9.4 9.1 9.9
Non current investments 2,523 5,591 5,591 5,591 Gross Debt/EBITDA 4.0 3.2 2.9 2.5
Cash and Equivalents 19,768 29,676 21,293 37,367 Gross Debt/Equity 1.3 1.1 0.9 0.7
Inventories 6,571 5,203 5,328 6,626 Adjusted Debt/Equity 1.3 1.1 0.9 0.7
Sundry Debtors 19,784 35,401 31,604 36,093 Interest Coverage Ratio 3.3 3.9 4.4 5.7
Loans & Advances 41,110 49,276 52,878 59,279
Other Current Assets 70,505 63,345 69,329 70,447 Operating ratios
Current Assets (ex cash) 137,969 153,224 159,139 172,444 Year to March FY17 FY18 FY19E FY20E
Trade payable 4,937 4,897 4,953 6,014 Total Asset Turnover 0.2 0.3 0.3 0.3
Other Current Liab 15,306 14,597 14,869 15,147 Fixed Asset Turnover 0.4 0.5 0.5 0.5
Total Current Liab 20,244 19,494 19,822 21,160 Equity Turnover 0.5 0.6 0.5 0.5
Net Curr Assets-ex cash 117,726 133,730 139,318 151,284
Uses of funds 395,692 441,152 458,839 498,541 Valuation parameters
BVPS (INR) 84.7 101.8 118.2 137.8 Year to March FY17 FY18 FY19E FY20E
Adj. Diluted EPS (INR) 18.9 17.0 20.0 24.0
Free cash flow (INR mn) Y-o-Y growth (%) 35.0 (10.0) 17.5 20.2
Year to March FY17 FY18 FY19E FY20E Adjusted Cash EPS (INR) 24.5 22.7 26.7 31.4
Reported Profit 39,115 36,736 41,356 49,741 Diluted P/E (x) 21.0 23.4 19.9 16.5
Add: Depreciation 11,602 11,884 13,950 15,259 P/B (x) 4.7 3.9 3.4 2.9
Interest (Net of Tax) 12,976 10,542 9,829 8,879 EV / Sales (x) 12.2 9.0 8.7 7.3
Others (10,805) (7,986) (6,780) (6,968) EV / EBITDA (x) 18.1 14.5 13.8 11.7
Less: Changes in WC (12,870) (11,692) (5,587) (11,966) Dividend Yield (%) 0.3 0.5 0.8 0.9
Operating cash flow 40,019 39,484 52,767 54,945
Less: Capex 32,479 26,940 26,818 26,921
Free Cash Flow 7,540 12,544 25,949 28,024

Peer comparison valuation

Market cap EV / EBITDA (X) P/B (X) ROAE (%)
Name (USD mn) FY19E FY20E FY19E FY20E FY19E FY20E
Adani Ports and Special Economic Zone 12,460 13.8 11.7 3.4 2.9 17.7 18.4
Gujarat Pipavav Port 1,060 14.1 12.3 3.3 4.0 12.7 16.9
Median - 14.0 12.0 3.3 3.4 15.2 17.6
AVERAGE - 14.0 12.0 3.3 3.4 15.2 17.6
Source: Edelweiss research

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 Infrastructure - Ports

Additional Data
Directors Data
Mr. Gautam S. Adani CMD, Promoter & Executive Director Mr. Rajesh S. Adani Promoter & Non-Independent Director
Dr. Malay Mahadevia Executive Director Prof. G. Raghuram Independent & Non Executive Director
Mr. G.K. Pillai Independent & Non Executive Director Mr. Sanjay Lalbhai Independent & Non Executive Director
Mr. A. K. Rakesh GMB Nominee Ms. Radhika Haribhakti Independent & Non Executive Director

Auditors - M/s. S. R. Batliboi & Associates

*as per last annual report

Holding – Top10
Perc. Holding Perc. Holding
Adani gautam s 42.97 Life insurance corp 7.59
Adani tradeline 6.78 Afro asia trade & in 4.42
Emerging market inv 4.13 Universal trading co 3.9
Worldwide emerge mkt 3.82 Fmr llc 1.59
Vanguard group 1.42 Blackrock 1.35
*in last one year

Bulk Deals
Data Acquired / Seller B/S Qty Traded Price

No Data Available
*in last one year

Insider Trades
Reporting Data Acquired / Seller B/S Qty Traded
05 Feb 2018 Emerging Market Investment DMCC Buy 150000.00
29 Jan 2018 Emerging Market Investment DMCC Buy 8250000.00
25 Jan 2018 Emerging Market Investment DMCC Buy 2200000.00
24 Jan 2018 Emerging Market Investment DMCC Buy 1750000.00
03 Jan 2018 Emerging Market Investment DMCC Buy 950000.00
*in last one year

8 Edelweiss Securities Limited

 RATING & INTERPRETATION

Company Absolute Relative Relative Company Absolute Relative Relative

reco reco risk reco reco Risk
Adani Ports and Special Economic Zone BUY SO L Gujarat Pipavav Port BUY None None

ABSOLUTE RATING
Ratings Expected absolute returns over 12 months

Buy More than 15%

Hold Between 15% and - 5%

Reduce Less than -5%

RELATIVE RETURNS RATING

Ratings Criteria
Sector Outperformer (SO) Stock return > 1.25 x Sector return

Sector Performer (SP) Stock return > 0.75 x Sector return

Stock return < 1.25 x Sector return

Sector Underperformer (SU) Stock return < 0.75 x Sector return

Sector return is market cap weighted average return for the coverage universe
within the sector

RELATIVE RISK RATING

Ratings Criteria

Low (L) Bottom 1/3rd percentile in the sector

Medium (M) Middle 1/3rd percentile in the sector

High (H) Top 1/3rd percentile in the sector

Risk ratings are based on Edelweiss risk model

SECTOR RATING
Ratings Criteria
Overweight (OW) Sector return > 1.25 x Nifty return

Equalweight (EW) Sector return > 0.75 x Nifty return

Sector return < 1.25 x Nifty return

Underweight (UW) Sector return < 0.75 x Nifty return

9 Edelweiss Securities Limited

 Infrastructure - Ports

Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91-22) 4009 4400, Email: [email protected]

ADITYA
Digitally signed by ADITYA NARAIN
DN: c=IN, o=EDELWEISS SECURITIES LIMITED,
Aditya Narain ou=HEAD RESEARCH, cn=ADITYA NARAIN,
serialNumber=e0576796072ad1a3266c2799
0f20bf0213f69235fc3f1bcd0fa1c30092792c2

NARAIN
Head of Research 0, postalCode=400005,
2.5.4.20=3dc92af943d52d778c99d69c48a8e
0c89e548e5001b4f8141cf423fd58c07b02,
[email protected] st=Maharashtra
Date: 2018.05.04 00:09:55 +05'30'

Coverage group(s) of stocks by primary analyst(s): Infrastructure - Ports

Adani Ports and Special Economic Zone, Gujarat Pipavav Port

Recent Research

Date Company Title Price (INR) Recos

20-Feb-18 Adani Ports Leagues ahead; 395 Buy

and SEZ Visit Note
02-Feb-18 Gujarat Realisation pressure 141 Buy
Pipavav Port continues;
Result Update
18-Jan-18 Adani Ports Volume rebounds; robust 416 Buy
and SEZ growth potential;
Result Update

Distribution of Ratings / Market Cap

Edelweiss Research Coverage Universe Rating Interpretation

Buy Hold Reduce Total Rating Expected to

Rating Distribution* 161 67 11 240 Buy appreciate more than 15% over a 12-month period
* 1stocks under review
Hold appreciate up to 15% over a 12-month period
> 50bn Between 10bn and 50 bn < 10bn
743
Reduce depreciate more than 5% over a 12-month period
Market Cap (INR) 156 62 11
594

One year price chart

446
(INR)

500
297
450

149 400
(INR)

- 350
Apr-14

Sep-14
Feb-14

Mar-14

Jun-14

Dec-14
Jul-14

Aug-14

Oct-14

Nov-14
May-14
Jan-14

300

250
Dec-17
Aug-17

Oct-17

Apr-18
May-17

May-18
Nov-17

Jan-18
Sep-17

Feb-18
Jun-17

Mar-18
Jul-17

Adani Ports and Special Economic Zone

10 Edelweiss Securities Limited

 Adani Ports and Special Economic Zone
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11 Edelweiss Securities Limited

Infrastructure - Ports

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 Adani Ports and Special Economic Zone

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