Buy Gujarat Pipavav; target of Rs 105: ICICI Direct

ICICI Direct's research report on Gujarat Pipavav

Gujarat Pipavav (GPPL) is a south-west Gujarat based port with an MNC promoter (APM Terminals – Maersk Group). It lies at a strategic international maritime location, which connects India with the Far East, on the one side, and Middle East, Africa, Europe and the US, on the other. The port container capacity is at 1.35 million TeUs, bulk capacity at 4-5 million MT and liquid capacity at 2 million MT • Container segment comprises ~70% of revenues.

Outlook

We remain positive on the stock and maintain our BUY recommendation. We value the stock at Rs 105 i.e. 16x P/E on FY24E EPS.