Mundra Port and SEZ
Mundra Port and SEZ
CMP: Rs642.20
Target Price: Rs 571
Batlivala & Karani has initiated coverage on Mundra Port and SEZ with an ‘underperformer’ rating due to its location and draft advantage, apart from factors like surging port traffic and the company’s industrial SEZ. “The participation of non-major ports (like Mundra Ports) would be critical to achieve the required capacity to handle around 1,000 million tonnes of total port traffic by 2012,” says the report. The report also highlights the point that Mundra Port has one of the deepest drafts available. “The deepest draft enables Mundra to accommodate large vessels, which brings along the concomitant economies of scale advantage to the customer,” adds the report. The company also intends to develop around 32,250 acres of land surrounding Mundra Port. “The company has in its possession 18,500 acres, out of which 6,750 has been notified as an SEZ. The balance land is under various stages of acquisition,” says the brokerage. Mundra Port has strategic stakes in Dahej Port, where Adani (Dahej) is building a solid cargo terminal of 15 million tonnes capacity, along with Petronet LNG
