Macquarie reduces target on Mundra Port & SEZ

MUMBAI: Macquarie Equities Research has maintained ‘Outperform’ rating on Mundra Port & SEZ. It has reduced the price target to Rs 148 per share after government’s proposal to tax SEZ developers and units operating at SEZ at an MAT (minimum alternate tax) rate of 18.5%.

“We reduce our target price by 8% to factor in the impact of a higher tax outgo and lower valuation for SEZ following a removal of tax incentives. Our revised target price is Rs 148. We believe the stock has already fallen considerably to factor in this negative news and we recommend accumulating the stock on any further fall,” the report said.