Container volumes at major ports jumped 7% in January this year on a year on year comparison says the recent data by Indian Ports Association (IPA).
Among various regions, South-based ports showed healthu volumes. Ports at Chennai, Tuticorin and Vizag recorded 6%, 26% and 39% respectively on a year on year comparison. According to a report by Axis Securities, “Aggregate cargo volume at major ports grew 5% YoY in Jan (up 3.4% YTD), which was driven by 23% growth in Iron ore and 9% rise in Coal volumes, while fertilizer volumes declined 23%.”
The report states, ” While near term growth for Container Corporation (CCRI) and Gateway Distriparks (GDPL) may remain muted, we are optimistic on their medium term growth prospects given healthy expansion plans across strategic locations. We have a BUY rating on (a) Navkar (TP of Rs255; implied P/E of ~22x FY17E EPS), (b) GDPL (SoTP-based TP of Rs295) and HOLD rating on CCRI (TP of Rs 1,160; 22x FY17E EPS).”