ICICI Direct's research report on Gujarat Pipavav Port
Container volumes de-grew 6% YoY (up 1% QoQ) to 167000 TEUs vs. our expectation of 174000 TEUs. This was completely offset by growth in bulk volumes, which was at 14% YoY (down 29% QoQ) to 502000 MMT vs. our estimate of 400000 MMT. Rail volumes continued to remain sluggish with de-growth of 3% YoY to 1.76 MMT.
OutlookThough current volumes at port remains subdued, updated capacity would better equip GPPL for the expected ramp up in trade activities. We continue to maintain our target price of Rs 165. However, given the recent price correction and attractive FCF yield (5%), we upgrade the rating to BUY recommendation.
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