Shares of Adani Ports fell on October 16 after the company’s Haifa Port in Israel recorded a growing backlog of ships and cargo as Tel Aviv gears up for a ground assault in the Hamas-controlled Gaza Strip, according to a Reuters report. Trade data showed that at least three laden dry bulk ships were waiting off Haifa.
Adani Ports said it is closely monitoring the action on the ground, which is concentrated in south Israel, whereas the Haifa Port is in the northern part of the country. “We have taken measures to ensure safety of our employees and all of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality,” a spokesperson for the company said in a statement earlier.
The fall comes a day after Kerala Chief Minister Pinarayi Vijayan and Adani Ports CEO and Whole Time Director Karan Adani inaugurated the Vizhinjam Port, India’s first mega transshipment hub. This deep-water container transshipment port will on stream within the next five-six months.
Adani Ports share performance, brokerage calls
Adani Ports shares have risen 22 percent in the last six months, outperforming the benchmark Nifty 50, which has rallied 11 percent during this period.
Earlier in October, domestic brokerage Motilal Oswal initiated coverage Adani Ports shares with a ‘buy’ rating, suggesting that rapid expansion and a diversified portfolio bode well for the company. It assigned a target price of Rs 1,010 on the stock, implying an upside potential of 24 percent from the October 13 closing price.