Adani ports trades flat post resignation of director

Shares of Adani ports traded flat after the resignation of Ranjitsinh B Barad as director. At 10:21am, the stock was trading 0.18 percent higher at Rs 715.05 on the NSE.

According to a BSE filing by Adani ports on June 23, Barad has quit as director of the Adani Group company with effect from June 21.

Adani group shares plunged the most by value in four months in the past week after Bloomberg reported that US authorities, including the department of justice and the Securities and Exchange Commission (SEC), launched an investigation into the conglomerate’s statements to American investors after short-seller Hindenburg Research accused it of tampering with its books.

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The combined market value of 10 group companies fell by $5.9 billion to $119.5 billion, marking it the steepest decline since 22 February, when it slid by $6.3 billion to $91.43 billion. Adani Enterprises and Adani Ports, both Nifty stocks, registered a 6.83 percent and 4.2 percent decline, following the allegations. Other notable losers were Ambuja Cements, Adani Power, and Adani Transmission, which experienced 4.3 percent to 5.8 percent drop.

Adani Group aims to recover with robust growth 

The embattled Adani group is eyeing a 20 percent on-year growth in pre-tax profits to reach Rs 90,000 crore EBITDA in 2-3 years on the back of robust growth in businesses ranging from airports to energy, according to notes in an investor presentation.

Earlier this month, the group repaid loans aggregating $2.65 billion to complete a prepayment programme to cut the overall leverage in an attempt to win back investor trust after the US short seller accusation.

The group now looks at robust growth in sectors such as airports, cement, renewables, solar panels, transportation and logistics, and power and transmission. It added that several of Adani’s infrastructure investments will also begin to fructify and generate cash in the coming years.

Stock Performance

The stock of Adani Ports and Special Economic Zone has lost 10.92 percent of its value over the last six months, considerably underperforming the benchmark Nifty50 index, which has given a return 3.62 percent over the same duration.

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