Stock Views on Mundra Port, Kesoram Industries

KRChoksey on Mundra Port - Target Rs 705

KRChoksey research is bullish on Mundra Port and Special Economic Zone has recommended buy rating on the stock with a target of Rs 705, in its research report.

"Mundra port is slated to become the largest standalone port in terms of the handling capacity by FY12-13 and based on our projections it would handle more than 100 mtpa by FY14, which would make it one of the largest standalone ports in terms of the cargo handled. Such growth will be mainly driven by the capacity expansion that the company has undertaken (coal terminal, dedicated container terminals for car exports, bulk cargo port at Dahej, ICDs at new locations, and additional rakes at Adani Logistics). We believe the company exhibited a steady performance in H1FY10. MPSEZ’s cargo growth was at 9.3% y-o-y in H1FY10, significantly outperforming the 2.9% y-o-y growth registered by the major ports in India during the same period."

"Major ports on the west coast (JNPT, Mumbai Port and Kandla Port) are operating at close to 100% capacity utilization. We thus believe Mundra port is well placed to attract the traffic on the west coast due to its unutilized capacity and strategic advantages. At the CMP, the company’s stock is trading at 25.3x its FY11E EPS of Rs. 22.0 per share. We initiate our coverage on MPSEZ assigning a BUY rating to the stock with 12-month target price of Rs 705, based on our SOTP valuation," says KRChoksey research report.


Sunidhi Securities & Finance on Kesoram Industries - Target Rs 480

Sunidhi Securities & Finance has recommended buy rating on Kesoram Industries with a target of Rs 480.

“Kesoram Industries’ Greenfield Tyre project of 257 TP per day capacity in the State of Uttarakhand with a Capex of about Rs 760 crore commenced the commercial production in phases during the financial year 2008-09. The Rs 783 crore expansion of 1.65 million tonnes of cement per annum in Vasavadatta Cement at Sedam in Karnataka as unit IV at the same site commenced production in June 2009 and a 17.5 MW Captive Power Plant commenced electricity generation from March 2009.”

“KIL is likely to post an EPS of Rs 85 in FY10, which would go up to Rs 98 in FY11. At CMP, the share is trading at a P/E of 4.4x on FY10E and 3.8x on FY11E. KIL stock was in an intermediate uptrend from early-March’09 till July ’09. RSI indicator (in the lower window) has declined far rapidly as compared to prices. The sideways consolidation in prices along with a rapid fall in RSI can pave way for the continuation of the prior uptrend. The stock is expected to move towards the 50% retracement level of Rs 390, which if broken would take the stock price to Rs 480 in the intermediate-term," says Sunidhi Securities & Finance research report.