Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Aug 10, 2020 01:01 PM IST | Source: Moneycontrol.com

Buy Gujarat Pipavav Port; target of Rs 90: ICICI Direct

ICICI Direct is bullish on Gujarat Pipavav Port has recommended buy rating on the stock with a target price of Rs 90 in its research report dated August 07, 2020.

Broker Research
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Gujarat Pipavav Port

Gujarat Pipavav’s Q1FY21 consolidated revenues de-grew 11% YoY to Rs 159 crore. Container volume (makes up 70% of revenues) de-grew 16% but, as per the management, outperformed other ports on western coast. Revenues saw positive traction from an improved product mix (container mix better YoY, due to sharper fall in transhipment volumes) and 5% movement in exchange rate. Subsequently, gross margins, EBITDA margins expanded 186 bps, 241 bps to 84.4%, 60.1% respectively. The EBITDA margin expansion also reflects the management’s focus on lowering cost and improving operational efficiency. Absolute EBITDA de-grew 7% to Rs 96 crore. However, due to higher depreciation, lower other income and lower profit from Pipavav Rail Corp, PAT de-grew 13% to Rs 48 crore.


We revise our target price to Rs 90 (at FY22E P/E multiple of 14) and maintain our BUY recommendation on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Aug 10, 2020 01:01 pm