KRChoksey is bullish on Mundra Port and has recommended buy rating on the stock with a target of Rs 175 in its October 21, 2011 research report.
"Mundra Port, order is highly insignificant for the company as it has been imposed on the construction of only a temporary approach road for trucks in the South Basin. The road in question has been constructed 340 metres from the Sea Shore and already has a buffer of 40 metres over the 300 metres permissible by the government. Management has confirmed that there would be no impact on the Port or SEZ operations with reference to this order as the temporary road can be demolished within a day and same can be replaced at a larger distance from the shore at a miniscule cost of Rs 2.5-3 Lacs."
"We believe, the development is insignificant for the company with no financial or operational impact and continue to maintain our "BUY" recommendation on MPSEZ considering the company's high growth potential with a price target of Rs 175 per share based on SOTP valuation, a potential upside of 16% from current levels," says KRChoksey research report.
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