Adani Ports gains on bargain buying

Adani Ports and Special Economic Zone rose 2.26% to Rs 710.95, amid some bit of value buying.

The stock had declined 5.47% in two sessions to end at Rs 695.25 yesterday, from its recent closing high of Rs 735.50 recorded on 9 June 2022.

On a year-to-date (YTD) basis, the stock has declined 18.53% while the benchmark Sensex has lost 9.34% during the same period.

On the technical front, the stock's daily RSI (relative strength index) stood at 41.134. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock is trading below its 50-day, 100-day and 200 day simple moving average (SMA) placed at 785.07, 754.34 and 748.30, respectively.

Last week, Fitch Ratings has affirmed Adani Ports and Special Economic Zone's (APSEZ) long-term foreign-currency issuer default rating (IDR) at 'BBB-'.

Fitch Ratings said that APSEZ's underlying credit profile reflects its status as India's largest commercial port operator, with best-in-class operational efficiency. The issuer has shown throughput resilience throughout economic cycles, including the current Covid-19 pandemic-related downturn.

The rating agency believes that APSEZ has adequate liquidity to weather near-term challenges. The company had a readily available cash balance of about Rs 91 billion at FYE22, against operating expenses of Rs 46 billion and interest costs of about Rs 26 billion. APSEZ has Rs 7 billion to repay or refinance in FY22.

Adani Ports and Special Economic Zone is India's leading private operator, having multiple ports across India. Its most important port, Mundra Port, contributed nearly half of the group's throughput and serves as the gateway to landlocked north-western India.

The company reported a 21.8% fall in consolidated net profit to Rs 1033.02 crore in Q4 FY22 from Rs 1320.69 crore recorded in Q4 FY21. Net sales rose 6.6% YoY to Rs 3,845.03 crore for the quarter ended 31 March 2022.

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