Mumbai, Jul 2: Private sector ports have emerged as the most preferred India infrastructure investment in recent times, says a report by Standard Chartered.
StanChart recently initiated coverage on Mundra Port SEZ with an outperform rating and a price target of Rs 201 per share.
The report on ‘Gateways to India- India Ports' says that Mundra is likely to become India's largest port by FY14.
Backed by strong demand, Mundra is adding significant capacity in terms of coal terminals, bulk terminals and increased container capacity.
The Abbot Point acquisition made by Mundra is value accretive and it expands its global footprint and adds Rs 27 per share to its net value asset, says the report.
As for financials, StanChart expects MPSEZ to post a 31% cumulative traffic over FY11-17.
According to the report, EBITDA is estimated to go up 47% to Rs 4100 crore and net profit (compounded annual growth rate) is expected around 35% to Rs 2200 crore over FY11-14E.
The premium valuation is justified, given the volume and earnings growth, robust management and execution capability of MPSEZ, says the report.