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Aug 04, 2011, 03.03 PM IST
Networth Stock Broking has maintained neutral rating on Gujarat Pipavav Port, in its August 3, 2011 research report.
“Incorporated in 1992, Gujarat Pipavav Port Ltd (GPPL) is India’s first privatesector port equipped with multi-cargo and multi-user features. The company has signed a Concession Agreement with the Gujarat Maritime Board to build, operate, develop and maintain Pipavav port until September 2028. Initially the company was established as a joint venture between SKIL Infrastructure and Gujarat Maritime Board, the company is currently being promoted by APM Terminals which is globally one of the largest container terminal operators with a presence in 34 countries. The port has a capacity to handle 5 MT of bulk cargo and 0.72 mn TEUs of container cargo besides a berth capable of handling 2 MT LPG cargos. Currently the stock trades at 40.3x CY12E EPS and 16.9x P/B basis. We believe that the stock is currently well priced at current levels.”
“APM Terminals is the largest container shipping line and second largest terminal operators in the world. It has 61 ports and terminals in 33 countries on five continents. It also has 16 new terminal development or expansion projects underway. With a presence in every major market, APM Terminals serves all major trade lanes providing its customers with the most advanced terminal technology, equipment and operations in the industry. GPPL is not only poised to benefit from its strong parentage but also in terms of additional business as it APM Terminals is a global leader in shipping lines. The container traffic in India has been growing at 15% YoY. At this rate, container traffic estimated to reach 21 mn by 2015 whereas Indian ports (major ports) have failed to expand their capacity to match the growth momentum which has resulted into capacity constraints. India’s total container capacity is just 9.1 mn. As a result the existing ports are unable to manage incremental traffic effectively. The JN Port is currently operating at 113% capacity utilization level. Thus proximity of Pipavav port near JN Port poses an opportunity to handle the incremental traffic.”
“GPPL enjoys a deep draught of 14 mt that enables large ships to dock at its jetties. Its strategic location near the northern coast of Gulf of Khambhat which falls along the major international maritime routes for ships going from the western world and middle-east to the far-east. And finally the excellent rail, road and coastal connectivity to the huge hinterland of Gujarat and landlocked northern India (which contributes 60% in the export and import trade of the country and 66% of GDP). Thus Pipavav Port is one of the most convenient gateways for cargo,” says Networth Stock Broking research report.
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To read the full report click here
Action in Gujarat Pipavav Port
Jun 20 2013, 11:06
- in FII View
Jun 20 2013, 11:06
- in FII View