Israel-Hamas war: Adani Ports shares update on Haifa port; stock rises 3%

Shares of Adani Ports climbed 3 per cent in Tuesday's trade, a day after plunging 5 per cent, after the Adani group firm clarified that Israel's ongoing war with militant group Hamas is concentrated in South Israel while the Haifa port, which it acquired for $1.2 billion earlier this year, is situated in the North.

The Port of Haifa is Israel's second largest in in terms of shipping containers. It is Israel's biggest in shipping tourist cruise ships. The Adani clarification came as investors were concerned over investments, even as the overall contribution of Haifa in Adani Port's numbers is relatively small at 3 per cent of the total cargo volume.

Besides they were concerned that if on Iran is dragged into the war, it may disrupt trade in Strait of Hormuz, which account for 35 per cent of the global LNG trade. Almost 21 per cent of the global oil passes through the narrow strip of sea.

Following the development, the Adani Ports stock rose 3.38 per cent to hit a high of Rs 816.65 on BSE.

Haifa Port is a multi-cargo port in North Israel. It has 10 terminals. Containers/bulk comprised 44 per cent/ 25 per cent of its cargo. Over 2011-21, cargo volumes have grown at 3.2 per cent CAGR at the port.

"In case of any temporary disruption in volumes at Haifa, it should not have a material impact on APSEZ volume number for FY24. In case of damage to the port, the maximum theoretical impact/ write-off would be limited to Rs30 per share (3-4 per cent of CMP of Adani Ports)," said InCred Equities.

The brokerage has a target of Rs 868 on the stock.

Adani Ports said it was closely monitoring the action on ground, which was concentrated in South Israel. The Adani group firm said it was taking measures to ensure safety of its employees.

All of them are safe, it said adding that it remains fully alert and prepared with a business continuity plan.

For the ongoing financial year, Adani Pots has guided for Haifa Cargo volumes range of 10-12 MMT and Adani Ports' total cargo volume guidance of 370-390 MMT. In the initial six months, Adani Ports' total cargo volume was 203 MMT, of which the Haifa share is 6 MMT.

"We stay confident of Adani Ports business performance," Adani Ports said.

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