Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) experienced a decline of close to 2%, falling to Rs 1,320.55 during early trading on Friday. This drop followed an announcement from Norway's central bank, Norges Bank, which blacklisted the Adani Group firm and two other entities from its portfolio due to ethical concerns.
Norges Bank manages the Sovereign Wealth Fund, recognized as the world's largest sovereign wealth fund. The bank's executive board made the decision to exclude India's Adani Ports from its government pension fund, citing the risk that the operator contributes to 'serious violations of individuals' rights in situations of war or conflict.'
The recent decline in Adani Ports shares has seen support around its 100-day moving average (DMA) set at Rs 1,250, according to Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox. Bagkar suggested that until this support mark is defended, the price action is anticipated to scale higher levels in the following sessions, with the next major move projected to occur over Rs 1,400.
Despite this setback, Adani Ports reported positive financial results for the quarter ended March 2024, with a consolidated net profit of Rs 2,040 crore, marking a growth of 76.2% year-on-year (YoY). The company recorded revenue from operations of Rs 6,896.5 crore, up 19% YoY, and reported an EBITDA margin improvement to 58.6% from 56.4%.
Looking ahead, BNP Paribas stated that capital expenditure would increasingly be aligned to transform Adani Ports into an integrated logistics play. JM Financial reiterated its buy rating on APSEZ after Q4 results, tweaking its FY25-26 EPS to reflect the performance and improved outlook. They value APSEZ at 18 times EV/Ebitda and arrived at a March 2025 target of Rs 1,660.
