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Gujarat Pipavav Port Ltd. Stock Analysis

Small Cap
Evaluated by 2321 users | BSE: 533248 | NSE: GPPL |
Port
Gujarat Pipavav Port was incorporated on August 5, 1992 to build, construct, operate and maintain the port at Pipavav, District Amreli, in the state of Gujarat, India. The company was initially promoted as a joint venture between GMB and Seaking Engineers (now SKIL Infrastructure). In June...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Gujarat Pipavav Port Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 2.26%7.81%8.09%12.68%25.12%10.34%12.64%9.95%10.29%14.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 284396416518694660683649702735
Y-o-Y Gr. Rt.-39.4%5.1%24.5%33.9%-4.9%3.5%-5%8.2%4.8%
Adjusted EPS (Rs.) -1.321.361.523.716.974.055.254.154.296.09
Y-o-Y Gr. Rt.-NA11.8%144.1%87.9%-41.9%29.6%-21%3.4%42%
Book Value per Share (Rs.) 17.3718.7225.0729.0329.6341.341.7741.6641.843.13
Adjusted Net Profit -55.957.773.5179337196254200207294
Net Op. Cash Flow (Rs. Cr.) 88.960.8262290355389402315296340
Debt to Cash Flow from Ops 8.9711.121.221.05000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Gujarat Pipavav Port Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.2%1.2%2.5%4.8%
Adjusted EPS NA-2.7%5.1%42%
Book Value per Share 10.67.81.13.2
Share Price 4.9% -11.2% -15.6% 5.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -10.687.547.3413.7126.3610.3312.639.9410.2814.34
Operating Profit Margin (%) 38.9546.142.4648.7258.2357.9462.0558.0955.7461.13
Net Profit Margin (%) -19.6914.5617.6834.6148.5629.6437.1330.8929.5440.04
Debt to Equity 1.080.850.260.22000000
Working Capital Days 11711112292103172156173182213
Cash Conversion Cycle -65-71-15-1342-5-3-1
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 44.01%
Institutions 45.57%
Non-Institutions 10.43%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Gujarat Pipavav Port Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Gujarat Pipavav Port Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Gujarat Pipavav Port Ltd.'s performance infers:

Gujarat Pipavav Port Ltd. earnings have declined by -2.7%, whereas share price has depreciated -11.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Gujarat Pipavav Port Ltd. share prices over the last 10 years. Here is what we found out:

Gujarat Pipavav Port Ltd. share price has depreciated 4.7% annually over the past ten years.

Gujarat Pipavav Port was incorporated on August 5, 1992 to build, construct, operate and maintain the port at Pipavav, District Amreli, in the state of Gujarat, India. The company was initially promoted as a joint venture between GMB and Seaking Engineers (now SKIL Infrastructure).

In June 1998, Gujarat Maritime Board (GMB) divested its stake in favour of SKIL Infrastructure. The APMM Group acquired a 13.5% equity interest in the company in June 2001. Pursuant to the share sale and

Gujarat Pipavav Port was incorporated on August 5, 1992 to build, construct, operate and maintain the port at Pipavav, District Amreli, in the state of Gujarat, India. The company was initially promoted as a joint venture between GMB and Seaking Engineers (now SKIL Infrastructure).

In June 1998, Gujarat Maritime Board (GMB) divested its stake in favour of SKIL Infrastructure. The APMM Group acquired a 13.5% equity interest in the company in June 2001. Pursuant to the share sale and purchase agreement dated March 30, 2005, SKIL Infrastructure, Nikhil Gandhi, Montana Valves and Compressors and Grevek Investment and Finance divested their shareholding in the company in favour of APM Terminals, the Industrialization Fund for Developing Countries and IDFC Infrastructure Fund.

The company is the developer and operator of APM Terminals Pipavav, India's first private sector port, which has multi-cargo and multi-user operations. It has the exclusive right to develop and operate APM Terminals Pipavav and related facilities until September 2028 pursuant to the Concession Agreement with GMB and the Government of Gujarat (GoG). It is promoted by APM Terminals, one of the largest container terminal operators in the world with a global network of 49 terminals in 32 countries and five continents.

In the year ended December 31, 2008, APM Terminals handled 34 million TEUs and had revenues of over $3 billion. Since acquisition of management control by APM Terminals in March 2005, the company has its expanded facilities to handle up to 0.60 million TEUs of container cargo as well as approximately five million tonnes of bulk cargo per year, which varies depending on the type of cargo handled.

At present, APM Terminals owns a 57.9% equity interest in the company. APM Terminals Pipavav is one of the principal gateways on the west coast of India and is located in the Saurashtra region of the state of Gujarat. APM Terminals Pipavav is an all-weather port and is protected by two islands, which act as a natural breakwater maximizing port safety.

Business area of the company

The company is engaged in providing port handling and marine services for container cargo, bulk cargo, and LPG cargo. In addition, the company operates a CFS and also generates revenue from land-related and infrastructure activities.

Awards and Achievements

2008 September: Annual Indian Maritime Gateway Awards 2008

Group companies

  • APM Terminals Pacific
  • Qingdao Qianwan Container Terminal Company
  • Maersk Espana S.A.
  • Sociedade Gestora de Terminais S.A.
  • APM Terminals Rotterdam B.V.
  • Cosco Ports (Nansha)
  • Meridian Port Holdings

Milestones

  • 1998 September: Concession Agreement entered into with GMB and GoG
  • 2000 May: PRCL incorporated as a joint venture company with Indian Railways, for gauge conversion of the rail line from Surendranagar to Rajula and laying of a new line from Rajula to Pipavav
  • 2001 June: Concession Agreement entered into between PRCL and the Indian Railways
  • 2001 June: APMM Group, through two of its companies, acquires 13.5% of the shareholding of the company as strategic investment
  • 2002 April: Commercial operations commenced
  • 2003 May: Broad gauge rail connectivity from Surendranagar to Pipavav commissioned
  • 2004 August: Three panamax quay cranes commissioned
  • 2005 April: APM Terminals Mauritius Limited, alongwith IDFC and IDFC Infrastructure Fund acquire the shareholding of the company from SKIL
  • 2006 March: First Port in India to receive Double Stack Container Train from ICD Kanakpura (Jaipur) to Pipavav
  • 2006 May: Phase I capital dredging completed enabling vessel acceptance draft of 12.5 metres
  • 2006 May: Mainline container vessel services commence operation
  • 2006 November: Eight rubber tyre gantry cranes commissioned
  • 2007 December: Environment friendly coal yard commissioned
  • 2008 January: Three post panamax quay cranes commissioned
  • 2008 January: Ten eco-friendly rubber tyre gantry cranes commissioned
  • 2009 April: Two post panamax quay cranes (PPQC) commissioned
  • 2009 May: Construction of Jetty No. 4 and modification of Bulk Liquid Jetty completed
  • 2009 May: Phase II capital dredging completed enabling vessel acceptance draft of 14 metres. Dredge material used to reclaim 70 hectare of land
  • 2009 July: Development of 2.6 hectares of paved container yards completed
  • 2009 October: Railway siding no. 5, 6 and 7 commissioning with the addition of about 2 km of internal railway tracks
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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