In the same period, the broader markets have risen 9.5 per cent.
Adani Ports is currently trading at a 39 per cent premium to the broader markets, but this is no different from other port assets across the world, claims Morgan Stanley, as these assets tend to have stable cash flows.
Obviously, the expectations of a favourable government coming to power is one of the reasons, there are several fundamental factors that could also contribute to the stock’s continued outperformance.
A key driver of this stock is expected to be the steady growth in traffic at all its ports in India, Australia and Indonesia.
The company’s Mundhra Port handled 100 million metric tonnes of cargo in FY14 and further widened its lead over Kandla as India’s largest port.
On an adjusted basis, J P Morgan says, cargo realisations at Mundra Port have been fairly stable (Rs 360 a tonne) and port operation Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins have been steady at 69-70
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