Adani Ports – Multibagger Analysis

In this post, let us analyze the Multibagger possibility of Adani Ports.

The quick note is: “Not a Multibagger!”

About Adani Ports

Adani Ports is a diversified conglomerate and pioneers in the private sector infrastructure development in India with a client and supplier base that spans continents.




Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. Sales & Profit are increasing. image
Durable Competitive Advantage
  • Even thought company shows good growth & profit margin, the success directly depends on India’s Infrastructural growth & competitors.
Future Growth Drivers India’s growth story should expect to add more growth. image
Conservative Debt (long term debt < 3 Net Profit) Debt is going above 3 times of current Net Profit. image
Return on Equity must be Above Average 29% is Impressive. image
Low CAPEX required to maintain current operations Moderate to High Capital Expenditure sector. image
Management is holding / buying the stock Some amount of promoter-sell is visible, but total holding level is impressive. image
Price is Under Valued (< intrinsic value) Not. image
Stock Price is consolidating Not, but less than 52week high. image


Additional Futurecaps Checklist

PE, PB Ratio PE is 15 (slightly higher) but less than Industry PE of 17 image
Cash Flow Positive Positive Cash flow image
Paying Dividends, Tax Paying Dividends & Tax image
EPS Growth Rate 20% – Okay, but not too impressive. image
Expected Gain in 10 Years 5 Times image
Power of Brand N.A image
Corporate Governance Yes. image
Reputation of Leaders Reputation bleeds. Illegal Mining blames are on the back!  link


Considering all the aspects & Applying Value, Growth, Fundamental Investing norms, We cannot confidently declare it as a multibagger!


Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

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