The Hindu Business Line : Growth prospects boost Adani Exports

Driving factors
The company to use land banks in Mumbai, Pune, Ahmedabad to get into realty business.
Container logistics, infrastructure businesses also to be major revenue earners.
Proposed plans for retail business also attracting investors.

Mumbai , May 8

Shares of Adani Exports Ltd hit the upper circuit for the third consecutive session on Monday as investors anticipated better earnings in the coming quarters on the company's plans for real estate development in Mumbai, Pune and Ahmedabad.

Analysts said the Ahmedabad-based company holds good growth prospects over the next 6-12 months, going by the revenue potential arising from the real estate developments.

Top company sources, when contacted, said the company would get into real estate development business by utilising its `land banks' in Mumbai, Pune and Ahmedabad. The company, sources said, also has large tracts of land in other small cities as well. Both these investments would be routed through the new realty business group, they said.

The stock closed at Rs 125.50, up 8.24 per cent from the Friday's close of Rs 115.95. It had touched the upper circuit limit of Rs 127.50 during intra-day. The stock price has doubled over the last one-month period.

Dealers said Adani Exports, which is an illiquid counter, is an operator-driven stock and hence investors need to be cautious.

Mr Gaurang Shah of Geojit Financial Services, said the company could be a good prospect if investors hold on to the stocks with a timeline of six to 12 months. "It is a good growth story. However, investors need to be cautious given that it is an illiquid counter," he said.

The company's container logistics and infrastructure businesses such as ports and rail segments would also be a major revenue earner, given the huge infrastructure spending required in the coming years, said another dealer.

The company's proposed plan of retail business was also attracting investors into the stock, he said, adding that Adani Exports, which owns over 60 super markets in Gujarat, was likely to foray outside the State to cash in on the retail buzz.

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