Kotak Securities puts 'buy' on Mundra Port & SEZ
Kotak Securities has initiated coverage on Mundra Port & Special Economic Zone with a buy recommendation.
Mundra Port & SEZ
CMP: Rs 588.55
Target Price: Rs 716
Kotak Securities has initiated coverage on Mundra Port & Special Economic Zone with a buy recommendation as it feels that factors like location and infrastructure would help the company register steady growth in cargo volume.
���We feel the stock looks attractive if we consider it on SOTP (sum of the parts),��� says the report. This is due to its integrated business model coupled with superior infrastructure consisting of multi cargo port, SEZ, airport, rail and road connectivity.
Also, the industries in the surrounding SEZ would provide steady flow of cargo to the port, says the report. Mundra has an inherent distance advantage of 218 km with Delhi as compared to JNPT, which leads to reduced cost of transportation.
���Thus it is expected to lead to significant growth in handling of containers bound for the northern region,��� the report said. The company has also entered into long term contract with Indian Oil Corporation and Guru Gobind Singh Refinery for single point mooring facility for crude oil.
���Such long term contracts lend lot of safety to the huge investments required to set up the facilities on a big scale,��� feels the brokerage. Kotak has assigned a price target of Rs 716 over a 12-month horizon.
CMP: Rs 588.55
Target Price: Rs 716
Kotak Securities has initiated coverage on Mundra Port & Special Economic Zone with a buy recommendation as it feels that factors like location and infrastructure would help the company register steady growth in cargo volume.
���We feel the stock looks attractive if we consider it on SOTP (sum of the parts),��� says the report. This is due to its integrated business model coupled with superior infrastructure consisting of multi cargo port, SEZ, airport, rail and road connectivity.
Also, the industries in the surrounding SEZ would provide steady flow of cargo to the port, says the report. Mundra has an inherent distance advantage of 218 km with Delhi as compared to JNPT, which leads to reduced cost of transportation.
���Thus it is expected to lead to significant growth in handling of containers bound for the northern region,��� the report said. The company has also entered into long term contract with Indian Oil Corporation and Guru Gobind Singh Refinery for single point mooring facility for crude oil.
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���Such long term contracts lend lot of safety to the huge investments required to set up the facilities on a big scale,��� feels the brokerage. Kotak has assigned a price target of Rs 716 over a 12-month horizon.
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