Technical and SWOT Analysis of Adani Ports Share Price

Lets see Technical and Fundamental Analysis of Adani Ports share price using Charts and SWOT Analysis.

India’s largest private multi-port operator Adani Ports is a part of the Adani Group which is an integrated infrastructure corporation in the world. Adani Ports Share Price is listed on both Nifty 50 and Sensex.

The Charts indicate that Adani ports share price are clearly in between the levels of ₹ 365 to ₹ 441, a stock that is range bound in nature.

We can clearly see that there is no major demand in the stock as the volume is average with no extra ordinary demand for this stock at the current level.

The APSEZ stock can be considered bearish only if it breaks the ₹ 360 levels with significant volumes, or considered bullish only of it break the levels of ₹ 445 with extraordinary volume.

Till then, the stock will play between these levels.

Strength:

• Adani Ports and Special Economic Zone Limited (APSEZ) is India’s largest private multi-port operator. It is a part of the Adani Group, an integrated infrastructure corporation.
• APSEZ commenced operations at Mundra Port and currently operates 10 ports in India; comprising 45 berths and 14 terminals across 6 states.
• The Mundra Port is India’s largest Private port and is the crown jewel of Adani Ports and Special Economic Zone Limited (APSEZ). It also it hosts world’s largest coal import terminal.
• APSEZ operates a fleet of 19 dredgers which is the largest capital dredging capacity in India.
• APSEZ is the country’s largest private rail operator.
• The Mundra SEZ is the largest port-led operational and notified multi-product SEZ in India that offers land bank for large scale industries for manufacturing set-up based upon cluster-based development for various industries.
• APSEZ handles 15% of India’s cargo.
• The Total Cargo growth for APSEZ stands at 11% as compared to 8% from other Indian ports.
• The Container Growth for APSEZ stands at 27% as compared to 10% from other Indian ports.
• As per 2016, APSEZ has had an Operating Revenue grew by 19% YOY (from Rs. 7,109 Cr. to Rs. 8,439 Cr.)

Weakness: 

• Stiff competition & low market share value as compared to industry giants such as the Tata’s & Reliance.
• Limited presence though out the country.
• Allegations of Environmental violation.
• Event risks related to any large scale acquisition given the acquisitive growth strategy of the company.

Opportunity: 

• APSEZ getting into renewable energy. There is a lot of impetus given by governments to sustainable and renewable energy sources like wind & hydro electricity. The Adani Group already has the presence in power and thus they may find it simpler to move to hydroelectric or wind power.
• With the support of The Adani Group, APSEZ is always capable of expanding its reach to various countries.
• The Planning Commission of India has made proposals for expansion in roads and highways, ports, civil aviation and airports, and power infrastructure segments.

Threats:

• Facing delay in security clearance for the government in the port.
• The fluctuating International price of coal.
• Stricter norms to be followed to avoid environmental violations.
• In comparison to other Indian conglomerates like the Tatas or the Birlas the Adani Group has come into existence recently and thus need to earn the goodwill than that other long standing MNC’s have. Adding to this are allegations of illegal encroachment and mining scandals.

Conclusion: 

Adani Ports and Special Economic Zone Limited is a giant among giants, competing with firms that have stood tier ground in India from almost a century. With the country’s largest port under the belt of APSEZ, there is always room for growth and expansion in Adani Ports Share price. Since its inception in 1998 APSEZ has proved that, new comer in the Indian market can ready new heights in the areas of logistics, carriers, acquisition etc. Adani Group is the largest producer of thermal power in India and owns the largest integrated infrastructure conglomerate in the region. With the strong commitment to the society and nations, the conglomerate has been contributing to the growth and development of India in various ways.

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