Adani Ports surges on 42% rise in November cargo volumes

Adani Ports shares surged as much as 6.70 per cent after the company posted a 42 per cent surge in cargo volumes for the month of November 2023 year-on-year.

"In the initial eight months of FY 24 (April–November 2023), APSEZ handled around 275 MMT of cargo, a healthy 21 per year-over-year growth. This marks over 70 per cent of the top-end of its full-year guidance range of 370–390 MMT," said the company in an exchange filing.

Adani Ports witnessed significant growth across all major cargo categories in their business, including dry bulk, containers, and liquids and gas, recording year-on-year increases of over 60 per cent, 26 per cent, and 23 per cent respectively. The company reported handling around 275 million metric tonnes of cargo in the initial eight months of FY 2023-24, marking a robust 21 per cent year-on-year growth, as per the exchange filing.

"Logistics volumes continue to witness record growth with year-to-date (YTD) rail volumes of around 379,000 TEUs (over 23 per cent YoY) and GPWIS (general purpose waggon investment scheme) volumes of 12.3 MMT (over 44 per cent YoY). The highest-ever monthly GPWIS volumes were recorded in November 2023 at 1.72 MMT," it said.

The announcement led to a substantial surge in Adani Ports and Special Economic Zone shares, rising approximately 7 per cent to reach Rs 883.35 on Monday, resulting in a total market capitalization of over Rs 1.9 lakh crore. This surge follows previous settlements at Rs 872.55 during the previous trading session on Friday.

The stock has seen an impressive surge of about 125 per cent from its 52-week low of Rs 395 in February 2023, which followed Hindenburg Research's critical report on Adani Group stocks. Over the past six months, the stock has surged by 20 per cent, while maintaining nearly flat growth on a year-to-date basis.

The confidence of the market received a boost from the recent election results, with the BJP securing a clear mandate to form governments in Rajasthan, Chhattisgarh, and Madhya Pradesh. This positive political development resulted in a surge in Adani Group shares during early trade, with Adani Enterprises, the group's flagship company, hitting an upper circuit of 10 per cent.

As of 12:22 pm, shares of Adani Ports were trading at Rs 870.95, 5.21 per cent higher than the previous close on the NSE.