Adani port as a company has great potential as it has no direct competitor. It is also expanding its operations beyond the Indian coast. The trouble lies in cash flow as the business offers delayed returns. It also needs to invest in more secured investments. Overall it has got a good outlook but has to make move with caution.
STRENGTHS:
The company has a strong cash-generating ability from core business by improving cash flow from operations.
Book value per share improved from the last 2 years.
Company with decreasing promoter pledge.
WEAKNESS:
The company is slightly increasing in debt.
The company is not able to generate net cash.
OPPORTUNITIES:
Negative to positive growth in sales and profit with strong price momentum
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 violation#ADANIPORTS