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View Full Version : Gujarat Pipavav Port Ltd (NSE:GPPL) (BSE:533248)



SMR
06-02-2015, 11:01 PM
Gujarat Pipavav Port Limited is an India-based company engaged in the business of port operations. The Company is located 152 nautical miles from Nhava Sheva in Mumbai. The Company is operated by APM Terminals, which operates 56 ports and terminals, and 154 inland services in 63 countries. The Company handles a variety of bulk and break bulk cargo, such as coal, cement, clinker, fertilizers, steel, iron ore, agri-products, salt and soda ash. The Container Freight Station handles a range of cargo generated from the Saurashtra belt and other parts of northwest India, which includes cotton, wood pulp, sesame seeds, cattle feeds, agricultural products, ceramic tiles and soda ash, among others.

Official website: www.pipavav.com

SMR
06-02-2015, 11:02 PM
Gujarat Pipavav Port Ltd (GPPL) reported a decent set of numbers for 4QFY2015. It reported a 14.9% yoy increase in revenue to Rs166cr, in line with our expectation. On a sequential basis revenues were down 2.4%. Top-line growth on yoy basis was driven by (1) 32.7% yoy increase in Bulk business volumes (to 921,000MT), and (2) 57.5% yoy increase in Liquid Cargo business to 126,000MT. EBITDA for the quarter stood at Rs90cr (ahead of our estimate of Rs85cr), up 13.0% yoy and 5.3% qoq. Reported EBITDA margin came in at 54.5% in 4QFY2015 against 55.4% in the year ago quarter and 50.5% in the previous quarter. EBITDA for the quarter under review benefitted from de-hiring of equipments which were hired in the prior 2 quarters and increased contribution from the high margin Liquid Farm Tanks business. PAT for the quarter amounted to Rs67cr, up 9.5% yoy and down 25.1% qoq. On adjusting for exceptional items, the Adj. PAT stood at Rs89cr, up 25.1% yoy, and ahead of our estimate of Rs86cr. Adj. PAT margin for the quarter came in at 53.8% (vs 49.4% in the year ago quarter and 52.6% in the previous quarter). Risks to our Rating: - Unfavorable movement in USD-INR movement, - Delays in capex. Outlook and Valuation: At CMP of Rs221, GPPL is trading at FY2016E and FY2017E P/E multiple of 28.5x and 26.9x, respectively. We have valued the Ports business using free cash flow to equity holders (FCFE) to arrive at FY2017E based business value of Rs210. We have assigned 10x P/E multiple to our FY2017E earnings estimate of Pipavav Rail Corporation Ltd (PRCL) to arrive at business value of Rs7 (adj. for 38.8% stake). On using the sum-of-the-parts (SOTP) based valuation methodology, we arrived at FY2017E based price target of Rs217. Given the limited upside from current levels, we maintain our Neutral Rating on the stock.

Source: http://www.angelbroking.com

SMR
08-04-2015, 08:44 AM
Gujarat Pipavav Port Ltd (GPPL) reported a 10.9% yoy increase in revenue to Rs173cr. On a sequential basis, revenues were up 4.4%. Top-line growth on yoy basis was driven by (1) 23.9% increase in Bulk volumes (to 1,020,000MT), and (2) over 30% increase in Liquid Cargo business (to 107,000MT). EBITDA for the quarter stood at Rs87cr, up 0.4% yoy and down 12.7% qoq. Reported EBITDA margin came in at 50.2% in 1QFY2016 as against 55.5% in the year ago quarter and 60.1% in the previous quarter. Hike in freight rates from January 2015 and higher contribution from the high margin Liquid Farm Tanks business restricted the fall in the EBITDA margin. PAT for the quarter amounted to Rs80cr, down 0.1% yoy and up 5.6% qoq. On adjusting for exceptional items, Adj. PAT stood at Rs98cr in 4QFY2015. Adj. PAT margin for 1QFY2016 came in at 46.5% (vs 51.6% in the year ago quarter and 59.4% in the previous quarter). Risks to our Rating: Unfavorable movement in USD-INR movement, Delays in capex. Outlook and Valuation: At the current market price of Rs223, GPPL is trading at FY2016E and FY2017E P/E multiple of 26.3x and 22.7x, respectively. We have valued the Ports business using free cash flow to equity holders (FCFE) to arrive at FY2017E based business value of `230. We have assigned 10x P/E multiple to our FY2017E earnings estimate of Pipavav Rail Corporation Ltd (PRCL) to arrive at business value of Rs7 (adj. for 38.8% stake). On using the sum-of-the-parts (SOTP) based valuation methodology we arrive at a FY2017E based price target of Rs237. Given the limited potential upside from the current levels, we maintain our Accumulate rating on the stock.

Source: http://www.angelbroking.com/