Ambit maintains "Sell" on Mundra Port
Ambit Capital has maintained “Sell” recommendation on Mundra Port & SEZ Ltd for a target price of Rs 315, a downside of 17 per cent from current levels of Rs 380.
By ET Bureau |
MUMBAI: Ambit Capital has maintained ���Sell��� recommendation on Mundra Port & SEZ Ltd for a target price of Rs 315, a downside of 17 per cent from current levels of Rs 380.
The brokerage believes that the recent rally in the stock is without any change in the company���s fundamentals. The target captures all the expected volume growth at the Mundra port.
Ambit���s valuation is based on a 19 per cent CAGR volume growth between FY09-FY13, including a 25 per cent year on year growth in FY09 (FY09, 36.1 million MT) significantly outperforming the industry growth of 2.1 per cent.
The brokerage, however, believes that any potential upside from the target would be from incremental sale of lease of SEZ areas. It has valued the company on SoTP basis.
In the past month, since initiating coverage on March 5, the stock price of Mundra Port has moved up 18 per cent versus a 31 per cent rise in the Sensex.
Post FY13, Mundra Port would need to compete for incremental market share since capacity additions at major ports across India would be complete. Nevertheless, the company would continue to outperform the industry in terms of volume growth, Ambit maintains.
The brokerage believes that the recent rally in the stock is without any change in the company���s fundamentals. The target captures all the expected volume growth at the Mundra port.
Ambit���s valuation is based on a 19 per cent CAGR volume growth between FY09-FY13, including a 25 per cent year on year growth in FY09 (FY09, 36.1 million MT) significantly outperforming the industry growth of 2.1 per cent.
The brokerage, however, believes that any potential upside from the target would be from incremental sale of lease of SEZ areas. It has valued the company on SoTP basis.
In the past month, since initiating coverage on March 5, the stock price of Mundra Port has moved up 18 per cent versus a 31 per cent rise in the Sensex.
Post FY13, Mundra Port would need to compete for incremental market share since capacity additions at major ports across India would be complete. Nevertheless, the company would continue to outperform the industry in terms of volume growth, Ambit maintains.
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