is one of the stock which has rebounded most and now increasingly commentary coming in from fund managers suggests that some of them are nibbling into names such as Adani Ports or even . The question is, is there value emerging there for the long-term investor?
Absolutely, the way I look at it, I have been a fan of Adani Ports for a very-very long time and I maintain my view. I do not want to get swayed by these reports and other things because they pertain to the group but the assets on ground and the unique way Adani Port has developed, initially they were strong in the western ports.
Now they have ports in the eastern side, they have acquired strategic port in Israel. And overall, I think it is a fantastic infrastructure or logistics asset which will over a period of time handsomely reward the shareholders. So much before this incident I have been positive on Adani Ports, I continue to maintain my view on Adani Ports that it can be bought from a long-term investor’s point of view. It is a fantastic company. The other stock in the Adani Group which I have been a fan of has been Adani Wilmar.
Its valuation was a bit rich and it was significantly higher compared to many other FMCG peers. With this correction I think it is an opportunity to start nibbling into Adani Wilmar. It is a good long-term play and investors can buy this. I also must mention here that if you look at the trajectory, people were talking about Adani Group companies have gone up by over three years and things like that, the least appreciation was seen in Adani Port and then in Adani Wilmar.
If you look at the valuation also these were relatively reasonably valued even pre-correction and now post-correction they are definitely attractive from a long-term investor’s point of view so this can be acquired.
What are your thoughts on Ambuja Cements as a standalone asset? It is another stock which has rebounded very sharply out of all the other Adani Group of stocks. How are you looking at Ambuja Cements at current valuation for long-term investors?
We have still not got into that habit of thinking Ambuja and
as Adani companies and actually none of the challenges that Adani Group is facing are extending to Ambuja or ACC. So to club them with the challenges which some of the group companies are facing because of the report will be unfair. That is the reason probably we saw that sharp recovery as far as Ambuja Cements is concerned and to an extent ACC is concerned.
So as far as these value picks are concerned one has to take a call on the entire cement sector and decide whether Ambuja is worth picking or you should go to or you should go to .
But the point remains that if you like cement and if you want to be in cement there is absolutely no problem in buying either Ambuja or ACC. I personally prefer UltraTech but that is amongst the cement companies which one I like but there is fundamentally no problem so the investor can surely go and pick up Ambuja also after the correction.
