Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Mundra Port and SEZ
Wins another port terminal project
To develop 6.5mt coal terminal at Vishakhapatnam port
This Rs3bn project has been won through a competitive bidding process and will
be constructed in 24months. Though this is a small project given MPSEZ’s size
and would have regulated returns (terminal is in a major port and tariffs would be
determined by the Tariff Authority for Major Ports), it is a positive development as
MPSEZ establishes presence on the eastern coast.
Large coal-handling capacity; play on increasing coal imports
MPSEZ, through its various ports/terminals, will have the largest coal handling
capacities in the country - 1) Mundra- 60mt, 2) Mormugao- ~7mt (expandable to
10mt) and 3) Vishakhapatnam- 6.5mt. Dahej (20mt) and Hazira are multi-cargo
terminals but can handle coal (Dahej’s cargo is predominantly coal). For Mundra,
~30mt is on long-term contracts and it also handles coal for Adani Enterprises.
Vishakhapatnam and Mormugao have regulated tariffs. Mundra Port is likely to
handle the largest quantities of coal among various ports in the country by FY13.
Withdrawal of tax benefit to result in back-ended development of SEZ
The levy of MAT on SEZs as proposed in the current budget will not have an EPS
impact (due to MAT credit entitlement), though it will impact cash-flows (as the
company pays MAT instead of ~6% tax earlier). Also, withdrawal of tax incentives
for units in an SEZ, as proposed in the current budget, is likely to reduce the
attractiveness of the company’s large land parcel in our view.
Valuation: Maintain Buy with SOTP-based PT of Rs180 (Rs190 earlier)
PT reduction is led by impact of tax outflow/more back-ended SEZ development.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Mundra Port and SEZ
Wins another port terminal project
To develop 6.5mt coal terminal at Vishakhapatnam port
This Rs3bn project has been won through a competitive bidding process and will
be constructed in 24months. Though this is a small project given MPSEZ’s size
and would have regulated returns (terminal is in a major port and tariffs would be
determined by the Tariff Authority for Major Ports), it is a positive development as
MPSEZ establishes presence on the eastern coast.
Large coal-handling capacity; play on increasing coal imports
MPSEZ, through its various ports/terminals, will have the largest coal handling
capacities in the country - 1) Mundra- 60mt, 2) Mormugao- ~7mt (expandable to
10mt) and 3) Vishakhapatnam- 6.5mt. Dahej (20mt) and Hazira are multi-cargo
terminals but can handle coal (Dahej’s cargo is predominantly coal). For Mundra,
~30mt is on long-term contracts and it also handles coal for Adani Enterprises.
Vishakhapatnam and Mormugao have regulated tariffs. Mundra Port is likely to
handle the largest quantities of coal among various ports in the country by FY13.
Withdrawal of tax benefit to result in back-ended development of SEZ
The levy of MAT on SEZs as proposed in the current budget will not have an EPS
impact (due to MAT credit entitlement), though it will impact cash-flows (as the
company pays MAT instead of ~6% tax earlier). Also, withdrawal of tax incentives
for units in an SEZ, as proposed in the current budget, is likely to reduce the
attractiveness of the company’s large land parcel in our view.
Valuation: Maintain Buy with SOTP-based PT of Rs180 (Rs190 earlier)
PT reduction is led by impact of tax outflow/more back-ended SEZ development.
No comments:
Post a Comment