IDFC stays neutral on GPPL

NEW DELHI: IDFC Institutional Securities has maintained its ‘Outperformer’ rating on Gujarat Pipavav Port (GPPL) with a 12-month price target of Rs 65. IDFC said GPPL has staged a smart recovery in container volumes, led by new customers.


Its profitability, too, has improved on the back of higher volumes and product mix.Long-term contracts for around 30% of expanded capacity in containers, and inroads into fertilizer and wheat cargo add to volume visibility,it said.

Although uncertainity persists on trade recovery, it expects 17% CAGR in GPPL’s container volumes, largely led by market share recovery.On higher volumes and better efficiency, its sees a 260-bps rise in EBITDA margins and 45% earnings CAGR over CY12-14.