Deven Choksey of KRChoksey Investment Managers told CNBC-TV18, "There is no doubt about the prospects Adani Ports is carrying as far as the long-term investor is concerned. On one side you already have the higher amount of volume which is happening on all the ports and that is giving good amount of confidence because the volume improvements suggest that the company is going to have better operating performance in coming period. Also, the acquired ports in last couple of years, have already started contributing to the higher amount of tonnage on the port and that has started to get better realisation." "You already have seen more amount of traffic improvement in these particular areas in respective areas where the ports are operating. With this Delhi-Mumbai Corridor coming up, I think the traffic on the Mundra Port itself would increase and that would possibly mean a significant amount of volume jump moving forward. So, the potential is not doubted. At the same time you are seeing higher amount of the realisation on per tonne basis as far as the cargo handling traffic is concerned. The company is basically operating in infrastructure space having an EBITDA margin in excess of 60 percent and higher amount of return on capital (ROC) eventually with most of the ports starting to utilise better amount of capacity. So, potential wise it is a good opportunity," he said. "The concerning issues were up till now on some ports the governance issues were there with related to inter-company transactions or inter-group transactions for which they have taken the corrective measures. So, certainly the stock has found re-rating. I would consider this an investment opportunity, maybe I think the fall in price after this rise could be a good buy to re-enter into this stock."
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