Shares of Gujarat Pipavav Port gained 2 percent on July 11 following an on-year rise in container volumes for the June quarter.
The port registered a container volume of 191,000 twenty-foot equivalent units in the quarter ended June 30, as against 187,000 last year. It's dry bulk volume declined to 0.67 million MT from 0.93 million MT, while liquid volume increased to 0.26 million MT from 0.20 million MT in this period.
At 9:18am, shares of the company were trading at Rs 121.6, up 2.1 percent, on the BSE.
ICICI Securities pointed out that Q1 of FY24 has begun with headwinds for global container trade. Although ocean freight rates have corrected 50-60 percent from their previous highs, Indian exports have remained subdued, especially merchandise and handicraft, it added.
Catch up on all LIVE stock market updates here
The sentiment, however, is expected to improve as the year progresses with a pick-up in Chinese manufacturing and lower US inventory levels.
Gujarat Pipavav port is based in South-West Gujarat and has a multinational promoter, APM Terminals – Maersk Group. It lies at a strategic international maritime location, which connects India with the Far East on one side, and the Middle East, Africa, Europe and the US on the other.
Addition of three service lines in FY23 is seen boosting the export-import volumes for the port, while the commissioning of the dedicated freight corridor from September may help is corner a larger market share. What analysts also like about Gujarat Pipavav Port is that the company is debt free with return on invested capital shooting past 40 percent in FY24.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
