Buy Gujarat Pipavav Ports with a target at Rs 200: Citigroup
Despite sharp volume drop, EBITDA was more or less flat. The overall underlying business continues to generate very healthy cash flows, said the global investment bank.
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| Updated: Citigroup maintains buy rating on Gujarat Pipavav Ports post March quarter results, but slashed its 12-month target price to Rs 200 from Rs 206 earlier.
Despite sharp volume drop, EBITDA was more or less flat. The overall underlying business continues to generate very healthy cash flows, said the global investment bank.
Citi is of the view that with the container capacity increasing to 1.35mn TEUs, GPPL is well positioned for next leg of growth. Container volumes in 4QFY16 held up well but the bulk volume disappointed.
The global investment bank likes net cash on the balance sheet, healthy RoEs, and there is ample capacity to cater to improvement in demand. Growth likely to resume in FY17 as India's port cargo, container cargo is likely to resume growth.
Despite sharp volume drop, EBITDA was more or less flat. The overall underlying business continues to generate very healthy cash flows, said the global investment bank.
Citi is of the view that with the container capacity increasing to 1.35mn TEUs, GPPL is well positioned for next leg of growth. Container volumes in 4QFY16 held up well but the bulk volume disappointed.
The global investment bank likes net cash on the balance sheet, healthy RoEs, and there is ample capacity to cater to improvement in demand. Growth likely to resume in FY17 as India's port cargo, container cargo is likely to resume growth.
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