Mundra Port & SEZ – Time to Accumulate
By Super Trader on Jan 15, 2012 with Comments 0
Mundra Port and SEZ is one of the leading private sector strategically located ports in India providing port services for container cargo, crude oil cargo, and value added port services (railway services). It has exclusive right until February 2031 to develop and operate Mundra port. Port is well connected by both railways and roadways and has a privately developed rail line which is connected to Adipur.
Mundra Port is a fundamentally strong company. It has been consistently growing on sales front at 35% CAGR over a period of 5 years. Company is also well financed as the Net operating cash flow is consistently rising at 34% CAGR over the period of 5 years. Over the same period the EPS has grown at 55% CAGR and the ROIC has improved over the past 2 years. Margin wise, company has been able to maintain steady OPM’s and NPM’s despite challenging macro environment. ROE of the company is in the range of 22 -24% which is a reflection of how well the management and the company on the whole have performed.
One concern which the company had over the previous years was its high debt on the balance sheet. Over the period of time, debt has reduced substantially and if the interest rate cycle reverses, Mundra Port is one stock which can do exceedingly well.
On charts, Mundra Port is in the process of forming a bottom. Range of 110 – 120 remain a very strong support and for those looking to invest in the stock, can look at this range as a reasonable stop loss level.
Mundra Port Net Sales
Mundra Port Net Operating Cash Flow
Mundra Port EPS
Mundra Port NPM
Mundra Port Debt Equity
Mundra Port ROE
Mundra Port Chart
