Adani Ports (ADANIPORTS)

FairStock Score: 68/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Adani Ports through a Graham-Buffett lens, I see a large, profitable port operator with a durable position, but the price asks me to accept a lot. At ₹1700 and ₹3.92 lakh Cr market cap, it trades at 28.99x earnings and 4.08x book, while book value is ₹416.50. ROE 18.63% and ROCE 13.80% show decent capital returns, not extraordinary. The balance sheet is reasonably sturdy: debt/equity 0.64, current ratio 1.52, Altman Z 3.90, Piotroski 8/9, and FCF ₹7,438 Cr. Revenue has compounded 20.75% over five years and sales grew 18.60%, but profit growth is only 2.40%—that divergence needs watching. Latest quarter sales ₹9,705 Cr and net profit ₹3,043 Cr are solid, yet earnings quality must keep improving. The moat is implied by its port network and scale, though the numbers alone don't let me verify pricing power. Valuation is the rub. Graham Number is ₹610.68, giving a margin of safety of -149.07%; I'm paying nearly three times that cautious asset/earnings estimate. DCF intrinsic value ₹1716.30 is almost exactly the market price, so the stock looks fairly valued at best. PEG 1.74 and EV/EBITDA 279.07—if taken at face value—signal no obvious bargain. Dividend yield 0.45% offers little income. Promoter holding 68.02% aligns control but leaves minority investors with governance/key-person considerations. I'd call it a steady Stalwart: quality asset, acceptable leverage, but not for me at this price unless profit growth catches up and valuation offers a margin of safety.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer