Adani Ports – Multibagger Analysis

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.

Website: http://www.adaniports.com/

Analysis: http://www.screener.in/company/532921


Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes. 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 DriversIndia’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 Average29% is Impressive.image
Low CAPEX required to maintain current operationsModerate to High Capital Expenditure sector.image
Management is holding / buying the stockSome amount of promoter-sell is visible, but total holding level is impressive.image
Price is Under Valued (< intrinsic value)Not.image
Stock Price is consolidatingNot, but less than 52week high.image


Additional Futurecaps Checklist

PE, PB RatioPE is 15 (slightly higher) but less than Industry PE of 17image
Cash Flow PositivePositive Cash flowimage
Paying Dividends, TaxPaying Dividends & Taximage
EPS Growth Rate20% – Okay, but not too impressive.image
Expected Gain in 10 Years5 Timesimage
Power of BrandN.Aimage
Corporate GovernanceYes.image
Reputation of LeadersReputation 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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

New Year Offer

Click below to avail the New Year Offer! (only for few days)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: