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1Mundra Port & SEZ Ltd.

Mundra Port and SEZ Ltd Accumulate

CMP Rs.775

Target Price Rs.852

Key Data

Face Value (in Rs) 10.00

Market Cap (Rs in mn) 310052.7

Total O/s Shares in (in mn) 400.7

Free Float 18.96%

52 Week High / Low 787/290

Avg. Monthly Volume (BSE) 249963

Avg. Monthly Volume (NSE) 607818

BSE Code 532921

NSE Code MUNDRAPORT

Bloomberg Code MSEZ IN

Beta 0.73

Date of Incorporation May. 1998

Last Dividend Declared 30%

Six month return 41%

Indices BSE-100

FCCBs outstanding (in Rs mn) N.A

Warrants outstanding N.A.

One Year Price Chart

0

100

200

300

400

500

600

700

800

Ma r- 09 Ma y- 09 Jun -0 9 Jul -0 9 S ep -0 9 O ct -0 9 De c- 09 Ja n- 10 Ma r- 10

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

C los ing P rice Vo lu me

Source: Capitaline

Share Holding Pattern

Banks/MF s/Instit

utions/Ins

2.4%

Public&Others

5.1%

FIIs

7.4%

NonPromoters

(BodyCorporate)

4.0%

Promoters

81.0%

Source: Company, KJMC Research

Hiral KotakResearch Analyst

Phone-022 4094 5500 Ext. 205

Email - [email protected]

MundraPort&SpecialEconomicZone(MPSEZ),Indialargestprivateportisslatedto

cross 100 mn tones of volumeby FY13E from 35.7mn tonnes in FY09 drivenby

operational of coal terminal, increasing container&bulkvolumes, and increase in

crudevolumesfromHPCLandIOCL.Weremainpositiveonthegrowthprospectsof

MPSEZonbackofits1)locationadvantage,2)commissioningofcoalterminal3)key

strategic investments, 4) development of multi product SEZ, 5) state of the art

infrastructureand6)potentialtoaddcapacity.We initiatethecoverageonthestock

withaAccumulateratingandSOTPbasedtargetpriceofRs852/ translatinginto

potentialupsideof10%.

Investment Trigger Highlights

Location advantage, excellent connectivi ty and state of the art infrastructure

MundraPort isIndias largestprivateportonthewestcoast,withthedeepestdraft

port

in

the

range

of

17.5

23

metres

making

it

attractive

for

larger

vessels.

Excellent

multimodalconnectivitybybothrail(438kmadvantagebyMundraDelhicompared

toMumbaiDelhi) and roads (206km advantage overMumbai port) and access to

hinterland.

Long term contracts provide steady revenue and cash flowsMPSEZhassignedlongtermcontractswith1)Tatapower(4000MW)&AdaniPower

(4620MW) for coal traffic, 2)with IOCL for crude&withHPCL forPOL / crude

productsand3)MOUwithMarutiforexportsofcars.Overthelongterm,MPSEZs

cargovolumeislikelytobedrivenbyitsSEZwhichwouldhouseexportandimport

orientedindustries.

Capacity expansion and strategic investments to drive growthMundraPortpresentlyhas55mtpacargohandlingcapacityatportand25mtpaSPM

capacity for crude. The company is constructing 50mtpa coal terminal, 25mtpa of

crudeSPMforHMELBhatindarefineryand15mtpaofbulkcapacitywhichwilltake

the port capacity to 170mtpaby FY12E.MPSEZ hasdone strategic investments in

variousotherbusinesseslikecontainerrailoperations,Dahejport,develop&operate

Mormugaoport,developmentoffacilitiesatHazira.Thevaluepershareofstrategic

investmentcomestoRs48.

SEZ business will accelerate revenue growthToleveragetheadvantageofport,theMPSEZisdevelopingamultiproductSEZover

32,000acresof land.Thecompany is targetingtohousevarietyofmanufacturing&

servicing units,which can create captive cargo for itsportbusiness.The company

chargesupfrontpaymentofRs6580lacsperacreof landand~Rs6persq feetas

annualleaserentals.Thecostofpurchasing23650acresoflandforthecompanyisRs

315crsimplyingthecostof~Rs1.3lacsperacre.

Standalone Financial Snapshot Rs in mn

Parti culars FY08 FY09 FY10E FY11E FY12E FY13E FY14E

Total Income 8182.1 11351.2 13257.6 17922.2 25727.6 31032.1 36420.4

Growth (%) 40.7 38.7 16.8 35.2 43.6 20.6 17.4

EBIDTA 5354.1 7616.4 9450.3 12916.6 18596.3 22536.2 26699.9

EBIDTA margins (%) 65.4 67.1 71.3 72.1 72.3 72.6 73.3

PAT 2134.1 4611.2 6924.0 8945.2 14237.2 18122.4 22565.3

EPS 5.3 11.5 17.3 22.3 35.5 45.2 56.3

P/E 145.5 67.3 44.8 34.7 21.8 17.1 13.8

EV/EBIDTA 59.9 42.3 34.6 25.4 17.2 13.6 10.8

ROE (%) 8.2 15.7 20.1 22.3 27.8 27.8 26.9

ROCE(%) 10.6 10.8 11.8 14.6 20.3 22.4 24.1

Source: KJMC Research

March30th,2010

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Disclaimer/Importantdisclosures

KJMCCAPITALMARKETSERVIESLIMITEDisafullservice,stockbrokingcompany,andisamemberofBSE(BombayStockExchangeLtd.,

andNSE (NationalStockExchangeof IndiaLtd.,KJMCgroupand itsofficers,directors,andemployees, including theanalyst(s),andothers

involvedinthepreparationorissuanceofthismaterialandtheirdependants,mayonthedateofthisreportorfrom,timetotimehavelongor

shortpositions in,actasprincipal in,andbuyorsell thesecuritiesorderivatives thereofofcompaniesmentionedherein.Or salespeople,

dealers,tradersandotherprofessionalsmayprovideoralorwrittenmarketcommentaryortradingstrategiestoourclientsthatreflectopinions

thatarecontrarytotheopinionexpressedherein.KJMCgroupmayhaveearlierissuedormayissueinfuturereportsonthecompaniescovered

hereinwith

recommendations/information

inconsistent

or

different

from

those

made

in

this

report.

In

reviewing

this

document,

you

should

be

awarethatanyoralloftheforegoing,amongotherthings,mightgiverisetopotentialconflictsofinterest.KJMCgroupmayrelyoninformation

barriers,suchasChineseWallstocontroltheflowofinformationcontainedinoneormoreareaswithinKJMCgroupintootherareas,units,

groupsoraffiliatesofKJMCGroup.KJMCgroupanditsassociatesmayinpast,presentorfuturehaveinvestmentbanking/advisoryrelationship

withcompanie(s)mentionedherein.

Theprojectionsand forecastsdescribed in this reportwerebaseduponanumberofestimatesandassumptionsandare inherently subject to

significantuncertaintiesandcontingencies.Projectionsandforecastsarenecessarilyspeculativeinnature,anditcanbeexpectedthatoneormore

of theestimatesonwhich theprojectionsand forecastswerebasedwillnotmaterializeorwillvarysignificantly fromactualresults,andsuch

varianceswill likely increaseover time.Allprojectionsand forecastsdescribed in thisreporthavebeenpreparedsolelyby theanalystof this

report independentlyof theKJMCGroup.Theseprojectionsand forecastswerenotpreparedwithaview towardcompliancewithpublished

guidelinesorGAAP.Youshouldnotregardtheinclusionoftheprojectionsandforecastsdescribedhereinasarepresentationorwarrantybyor

onbehalfof theKJMCGroup,or specificallyKJMCCAPITALMARKETSERVICESLIMITED,or theanalystsoranyotherperson that these

projections or forecasts or their underlying assumptionswillbe achieved. For these reasons, you should only consider the projections and

forecasts described in this report after carefully evaluation all the information in this report, including the assumptions underlying such

projectionsandforecasts.Thisreportisforinformationpurposesonlyandthisdocument/materialshouldnotbeconstruedasanoffertosellorthesolicitationofanofferto

buy,purchaseorsubscribetoanysecurities,andneitherthisdocumentnoranythingcontainedhereinshallformthebasisoforberelieduponin

connectionwithanycontractorcommitmentwhatsoever.Thepriceandvalueoftheinvestmentsreferredtointhisdocument/materialandthe

incomefromthemmaygodownaswellasup,andinvestorsmayrealizelossesonanyinvestments.Pastperformanceisnotaguideforfuture

performance.Futurereturnsarenotguaranteedandalossoforiginalcapitalmayoccur.Actualresultsmaydiffermateriallyfromthosesetforth

inprojections.Forwardlookingstatementsarenotpredictionsandmaybesubjecttochangewithoutnotice.KJMCGroupanditsaffiliatesaccept

noliabilitiesforanylossordamageofanykindarisingoutoftheuseofthisreport.

Thisreport/documenthasbeenpreparedbytheKJMCGroupbaseduponinformationavailabletothepublicandsources, (includingcompany

sources)believedtobereliable.Thoughutmostcarehasbeentakentoensureitsaccuracy,norepresentationorwarranty,expressorimpliedis

madethatitisaccurateorcomplete. KJMCGrouporspecificallyKJMCCapitalMarketServicesLtd.,hasreviewedthereportand,insofarasit

includes current or historical information, it isbelieved tobe reliable, although its accuracy and completeness cannotbe guaranteed. This

informationhereinwasobtainedfromvarioussources;wedonotguaranteeitsaccuracyorcompleteness.Thisdocumentdoesnothaveregardto

thespecificinvestmentobjectives,financialsituationandtheparticularneedsofanyspecificpersonswhomayreceivethisdocumentandshould

understandthatstatementsregardingfutureprospectsmanynotberealized.Investorsshouldnotethatincomeformsuchsecurities,ifany,may

fluctuate(bothdownsideorupside),and thateachsecurityspriceorvaluemayriseorfall.Accordingly, investorsmayreceiveback lessthan

originallyinvested.Pastperformanceisnotnecessarilyaguidetofutureperformance.

AnalystCertification

Iherebycertifythattheviewsexpressedinthisdocumentreflectmypersonalviews.Ialsocertifythatnopartofmyrespectivecompensationwas,

is, orwillbe, directly or indirectly, related to the views expressed in this document. I do not own any amount of stock in the company

recommended/coveredinthisreport.

Generaldata

sources

Company,Capitaline,Publicdomain,Bloomberg.

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Contents

Investment Highlights ............................................................................. 4

Company Background.............................................................................. 8

Management Details ............................................................................... 10

Industry Overview.................................................................................. 11

Financial Analysis ................................................................................... 13

Peer Comparison..................................................................................... 14

Key Risk & Concerns .............................................................................. 14

Outlook & Valuation .............................................................................. 15

Financial Summary ................................................................................. 17

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Investment Highlights

Location advantage, excellent connectivity and state of the art infrastructure

MundraPortisIndiaslargestprivateportonthewestcoastofIndiawiththe

deepestdraftportinIndiaintherangeof17.523metresmaking itattractive

forlargervessels.Theporthasanexcellentmultimodalconnectivitybyboth

rail

(438km

advantage

by

Mundra

Delhi

compared

to

Mumbai

Delhi)

and

roads (206km advantage over mumbai port); access to hinterland and

operationalefficiencycompared toportson thewestcoast.Themultimodel

connectivity through sea, air and rail link in the SEZwouldmake product

deliveryefficientandeconomical.

Anallweatherportwithnaturaldraftof17.523metresisoneofthedeepest

draftportonthewestcoastatashortdistancefromtheshorewhichenablesit

to handle large size vessels, reduces the transportation cost and gives

economies

of

scale.

Deep

water

draft

makes

it

port

of

choice

for

shipping

lines.

0

2

4

6

8

10

12

14

16

18

20

Kandla

Chennai

Mormugao

Tuticorin

Vishakhapatnam

JNPT

Mumbai

Paradip

New

Mangalore

Haldia

Kolkata

Cochin

Pipavav

MundraPort

Draft(mtr)

Average Turnaround TimePort No. of days

Mundra 1.5

JNPT 1.9NMPT 3.0

Mormugao 3.6

Mumbai 4.7

Kandla 5.2

Mundra Port can handle large size vessels

Type of Vessel Capacity (dwt) Draft required

Handy Size Bulk 10000-30000 10

Panamax Bulk 50000-80000 12

Capesize Bulk 80000-200000 15

Aframax Crude 80000-120000 15Suezmax Crude 120000-200000 17

VLCC Crude 200000 & above 20-25

Source: IPA, NMDP , KJMC Research

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Railways&roadwaysareimportantlinksforthetransportationofgoodsto&

from any port to the cargo centre at Mundra Port. The port has privately

developeda57kmrailheadwhichisconnectedtothenearestrailheadAdipur.

Mundra Port is connected by rail, road & pipeline to the transportation

networkofIndia,particularlytheinlandregionsofwestern&northernIndia

includingDelhi.

Rail Connectivi ty Pipeline Network


Coal terminal to drive cargo volume

MundraPortisconstructing50mtpacoalterminalforupcomingpowerplants

atacostofRs2000crs.MegathermalpowerplantslikeTataPower(4000MW),

Adani Power (4620MW),RajWestPower etc arebeing constructed in and

aroundMundraPortregion.Thecoalterminalwillhaveadepthof22metres

andwillmainlycatertoTataPowerandAdaniPowercoalrequirements.The

total coal requirements from both the power plants once they are fully

operationalwouldbearound32mtpa.Theterminalislikelytooperationalby

Q3FY11.

(mn tonnes)

Coal Terminal FY11E FY12E FY13E FY14E FY15E FY16E

Tata Power 1.5 9.0 12.0 16.0 16.0 16.0

Mundra Port 3.5 6.5 12.0 16.0 16.0 16.0

Total 5.0 15.5 24.0 32.0 32.0 32.0

Long term contracts provide steady revenue and cash flows:

MPSEZ will clock strong volume growth backed by long term contracts.

MPSEZ has signed long term contracts with 1) Tata power (4000 MW) &

AdaniPower(4620MW)forcoaltraffic,2)withIOCLforcrude&withHPCL

forcrude/POLhandlingand3)MOUwithMarutiforexportsofcars.More

coal volume canbe expected from the power plants that are anticipated to

spring up inwestern India.Over the longterm,MPSEZs cargo volume is

likelytobedrivenbyitscaptiveSEZwhichwouldhouseexportandimport

orientedindustries.

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Long Term contracts

Indian Oil Corporation Limited (IOCL)

Type of Service Handling & transportation crude oil cargo directly to IOCL refinery in Panipat

Duration of the contract Terminate along with concession agreement in Feb 2031

Minimum fixed annual payments of Rs 35crs upto 8.25 - 11 mn tonnes

Fixed Annual payments of Rs 48.41crs for 11 mn tonnes & above (escalation lined to WPI)Payment

Royalty payment of Rs 48.4/t & Wharfage fees of Rs 12/t (escalation lined to WPI)

HPCL, Subsidi ary Guru Gobin Singh Refineries Ltd (GGSRL)

Type of Service Handling & transportation crude oil cargo directly to GGSRL refinery in Bhatinda

Duration of the contract Signed in 2002

Royalty payment of Rs 67/t if volumes are not guaranteed (incl. Wharfage)

Royalty payment of Rs 63/t if volumes are guaranteed (incl. Wharfage)Payment

Escalation based on formula subject linked to WPI and CPI subject to no more than 17% for every 3 years

Adani Power Limited (APPL)

Type of Service Coal handling and marine services

Duration of the Contract Agreement is valid for 15 years from commencement of commercial operations

Rs 300/t for coal services providedPayment

Pilotage charge $0.57/ GRT, Waterfront Royalty Rs 30/t, Berth Hire $0.15/ GRT per day

Coastal Gujarat Power Ltd & Tata Power Limited

Type of Service Construct mechanized coal handling terminal and provide coal handling and marine servicesDuration of the Contract Valid upto 25th years from commencement of power plant or FY 2040 whichever is earlier

Annual fixed payment of Rs 138crs p.a.

Variable charge of Rs 68/t and escalation linked to 70% of CERC index every fiscal yearPayment

Wharfage charges Rs 43.2/t (escalation 20% every 3 yr) & other marine charges

Capacity expansion and strategic investments to drive growth

Mundra Port presently has an 80 mtpa cargo handling capacity at port

comprisingof30mtpaofbulk,25mtpaofcontainerand25mtpaofcrudeSPM

capacity. The company is constructing 50mtpa coal terminal for upcoming

powerplants,25mtpaofcrudecapacitySPMofHPCLBhatindarefineryand

15mtpa ofbulk capacitywhichwill take the port capacity to 170mtpaby

FY1112E.

Mundra

Port

has

the

long

term

potential

to

add

additional

capacity

duetoavailabilityoflargewaterfront.

Capacity Details (million tones)Terminal Existing Capacity Additions After expansion Operational Details

Dry Bulk 25 15 40 Q4 FY11E

Containers 30 0 30

Coal Terminal - 50 50 Q3 FY11E

Crude - SPM 25 25 50 FY12E

Total 80 90 170


MPSEZhas

done

strategic

investments

in

various

other

businesses

like

container rail operations,Adani Petronet (Dahej) port,develop and operate

Mormugao port, development of non LNG facilities at Hazira. With all

investmentsinvariousbusinessesMundraPortisanintegratedplayerinport

solutions.

Strategic Investments

MPSEZ is developing the mechanized solid cargo port terminal at Dahej

comprising

two

berths

with

a

capacity

of

15

20

mn

tonnes.

Adani

Petronet

(Dahej) Port Private Limited (APDPPL) is a joint venture between Adani

GroupandPetronetLNGterminal.MPSEZholds74%stake inAPDPPLand

the total costof theproject isRs1147crs,wouldbe through thedebtequity

ratio of 70:30. The terminal atDahej port is expected tobe operationalby

CY2010.Theconcessionagreementisfor30yearswhichexpiresin2031.

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o:

MPSEZ has won the bid to develop and operate 8 mtpa coal terminal at

Mormugao.The terminal is likely tobeoperational inFY12andcompany is

expected to handle 5mpta in first year itself. MPSEZ will share 20% of

revenues with the port authority and cost of the project is Rs 350crs. The

concessionagreementisfor30years.

MPSEZhassignedsubconcessionagreementforthedevelopmentofnonLNG

port facilitiesatHazira.Theoverallmasterplanof theportprovides for13

berths, to be developed in a phased manner, starting with 34 berths for

container, liquid and drybulk in the first phase. MPSEZwill share 3% of

revenuesafter10yearsofcommencementofoperations.Thesubconcession

agreement is for 35 years. Hazira is strategically located to capture traffic

originating/destined from/for South Gujarat,WesternMadhya Pradesh and

NorthernMaharashtra.

AdaniLogisticsLimited(ALL),inwhichMPSEZholds100%,isinthebusiness

of container rail freight servicesand InlandContainerDepot (ICDs).On the

rail business MPSEZ currently operates 6 rakes and plans to procure

additional20rakes.Thecompanyplanstodevelop14raillinkedICDsacross

thecountry.Presently two ICDsareoperationalatPatliandKishnagarhand

other ICDs locations areRaipur,Ludhiana,Ahmedabad,Mumbai,Chennai,

Bangalore, Nagpur etc. With the establishment of the ICDs it would help

MundraPorttoattractmorecontainercargocustomers.Theoverallcostofthe

remainingprojectisintherangeofRs700800crsandwouldbefundedinthe

D/Eratioof80:20.

SEZ business will accelerate revenue growth

To leveragetheadvantageofport,theMPSEZisdevelopingamultiproduct

SEZover32,000acresof landwithall the facilitiesof infrastructure,power,

railwayslines,airport,wateretc.Thecompanyistargetingtohousevarietyof

manufacturing and servicing units, throughwhich the company can create

captive cargo for itsportbusiness.MundraSEZhasalreadyacquired 23650

acresofwhich18,000acresarenotifiedbythegovernment.Thecompanyhas

already leased out land to various companies like Adani Power, Thermax,

BharatForgeetc.ThecompanychargesupfrontpaymentofRs6580 lacsper

acreoflandand~Rs6persqftasannualleaserentals.Thecostofpurchasing

23650acresoflandforthecompanyisRs315croresimplyingthecostof~Rs1.3lacsperacre.

SEZ Details (in acres)


Total size of SEZ 32000

Area under possession 23650

Notified Area 18000

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Company Background

Mundra Port and Special Economic Zone Limited (MPSEZ), Indias largest

privateport and special economic zone,was incorporated asGujaratAdani

PortLimited(GAPL)in1998todevelopaprivateportatMundra,onthewest

coast of India.The company commenced commercial operations inOctober

2001.Mundra SpecialEconomicZoneLimited (MSEZ)was incorporated in

November2003,

to

set

up

an

SEZ

at

Mundra.

MPSEZ

was

merged

with

GAPL

in April 2006. The company was renamed as Mundra Port and Special

EconomicZoneLimited,toreflectthenatureofbusiness.

TheMundraportisoneoftheleadingnonmajorprivatesectorportsinIndia

basedonvolumeofcargohandle.LocatedintheKutchdistrictofGujarat,the

companyisengagedinprovidingportservicesforbulkcargo,containercargo,

crudeoil cargo,andvalueaddedport services including railway services. It

hasexclusiverighttodevelopandoperateMundraportandrelatedfacilities

untilFebruary2031. Port isstrategically locatedwithrespecttothenorthern

andwesternhinterland, towhich it iswellconnectedbyboth railways and

roadways.ExportbusinessfromAfrica,MiddleEasternandWesterncountries

as well as Northern India which represents 70% of total container traffic

handledby all ports in India. It has a privately developed 57 km rail line

which is connected to thenearest railhead atAdipur.ThePorthas its own

1900 meters aerodrome equipped with latest navigational instruments for

landingofprivateexecutivejets.

Business Model

ICDs

MPSEZ

Ports development

in India

SEZ Logistics

Mundra Port

(100%

holding)

Mundra SEZ

(100% Holding)Container ra ilsDahej Port

(74: 26 JV

with

Petronet

Hazira

Adani Logistics

(100% Holding)

Dry Bulk

Crude

Oil/POL

Containers

Dry Bulk (All cargo

type except

LNG)

Mormugao

(100%

holding)

Coal Development multi

product SEZ over

32000 acres of

land.

Presently operating

6 rakes and plans to

procure addition 20

rakes.

Presently operating

2 ICDs & plans to

add further 12 ICDs.

Greenfield

Ports

Terminal

operations at

ports

Brownfield

Ports

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The company has customers like IOCL, Indian Railways, Indian Farmers

FertilizersCooperative,FoodCorporationofIndia,someoftheAdanigroup

companiessuchasAdnaiEnterpriseandAdaniPower.

MPSEZhashandle35.7mntonesofcargo inFY09likecoal,wheat,fertilizer,

steel, edible oil, chemicals, and petroleum products to container cargo,AutomobileandCrudeOil.

Cargo handled by Mundra Port

Coal, 6.29, 21%

V. Oil, Chemical &

POL, 5.19, 17%

Fertilizer, 1.88, 6%

Steel, 1.4, 5%

Minerals & Others,

1.26, 4%

Container, 8.12,

28%

Crude Oil, 5.69,

19%

Fertilizer, 2.67, 7%

V. Oil, Chemical &

POL, 4.77, 13%

Steel, 2.78, 8%Minerals & Others,

1.05, 3%

Container, 9.68,

27%

Coal, 7.36, 21%

Food Grains, 0.62,

2%Crude Oil, 6.79,

19%

Source:Company,KJMCResearch

Mundra Port promoters 81% stake to be merged with Adani Enterprise Limited(AEL)

The promoters 81% stake in Mundra Port will be merged with AEL and

Mundra Port will become the subsidiary of AEL. The following

transaction does not affect the shareholders of the Mundra Port. The

merging process will be subject to all the approvals.

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Management Details

Mr.GautamS.Adani:isthefounderChairmanoftheAdaniGrouphasbeen

associatedwithMPSEZsinceinceptionasapromoterdirector.Presentlyheis

appointedasCMDandCEOof the company.Underhis leadership,Adani

Group has emerged as a diversified conglomerate with interests in

international trading, infrastructure development, power generation and

distribution,development

of

special

economic

zones,

gas

distribution,

oil

and

gas exploration and production, coal mining and shipping. He has been

instrumental in the diversification of the Adani Group into the port and

logisticssector.

Mr.RajeshS.Adani: anonexecutivedirectorofMPSEZhasbeenassociated

withAdaniEnterprisesLimitedsinceitsinceptionin1988.Atpresentheisthe

ManagingDirectorofAdaniEnterprisesLtd.Hebringshisvastexperiencein

a variety of management functions ranging from Finance, Marketing and

businessdevelopment,Legalaspectsofbusinessandorganizationbuildingfor

the development of the MPSEZ. He has a Bachelor of Commerce (B.Com)

degreefrom

the

Gujarat

University.

Mr. Rajeeva Sinha: is a Wholetime Director ofMPSEZ.He served as an

officer in the IndianAdministrative Services for close to threedecades and

brings indepthknowledgeof the shippingandport sectorwhichhe served

for about 15 years in various capacities. He was the Deputy Chairman of

Mumbai Port Trust from September 1997 to August 2003. He was the

ManagingDirector ofGujarat Pipavav Port Limited fromOct 2005 toJune

2007.

Dr. Malay Mahadevia: is a Whole Time Director (WTD) ofMPSEZLwith

effectfrom

20th

May,

2009.

Working

both

as

apracticing

dentist

and

infrastructure developer has resulted in cross fertilization of ideas and

practicesresultingincontinuousimprovement,bothasahumanbeingandas

aprofessional.HejoinedCorporateSector in 1992with explicitmandate to

assessviabilityofbuildingacaptiveberth/Jettyforexports.

Mr. Arun Duggal: an independent director of MPSEZ is an experienced

internationalbanker advising corporations on Financial Strategy,M&A and

CapitalRaisingareas. Hehasbeenan InternationalAdvisor toanumberof

Corporations,majorFinancialInstitutionsandPrivateEquityfirms.

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Industry Overview

PortsareanimportantformofinfrastructureinIndianeconomy.Theyplaya

vital role in facilitating international trade and commerceby providing an

interfacebetweentheoceantransportandlandbasedtransport.

Indiahasanextensivecoastlineofabout7517kmspreadingon theWestern

andEastern

shelves

of

the

mainland

as

well

as

along

the

Islands.

It

has

awell

establishedport infrastructure covering 12majorports and200minorports

(nonmajorports).Thesemajorportscomeunder thepurviewof theCentral

Government, while nonmajor ports come under the jurisdiction of the

respectiveStateGovernments.

Major ports in India

Source:Company,KJMCResearchIndias95%externaltradebyvolumeand70%byvaluemovesbysea.Cargo

handlingvolume in12majorports in Indiawasat530million tonnes,while

nonmajor ports contributed another 213 million tonnes during FY09,

aggregatingto743milliontonnesimplyingagrowthof2.5%yoy.

Thenonmajorportshavegarneredabout29%ofmarketshare inFY09from

19%inFY2000,indicatinggrowingimportanceofnonmajorports.

Cargo Handled (mn tonne) Cargo growth (%)

0

100

200

300

400

500

600

700

800

FY03 FY04 FY05 FY06 FY07 FY08 FY09

mntonnes

Major Port Traffic Minor Port Traffic Total Profit Traffic

0.0

5.0

10.0

15.0

20.0

25.0

FY03 FY04 FY05 FY06 FY07 FY08 FY09

%

Major Port Traf fic Minor Port Traf fic Total

Source:Company,KJMCResearch

MbPT

JNPTParadip

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ThenonmajorportsofGujarathandled152milliontonnes inFY09.Mundra

port, the largest private sector nonmajor port, with a cargo of around 36

milliontonnesinFY09isamongthetop10portsinthecountry.

Atpresentmostof themajorportsareoperatingatmore than90%capacity

utilization levels leading to congestion, high turnaround time and resultant

increaseincost.

Capacity uti lization levels at major ports

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Kolkata

Haldia

Paradip

Vizag

C

hennai

Ennore

T

uticorin

Cochin

New

Mangalore

Mo

rmugao

Mumbai

Kandla

JNPT

MundraPort

%

Source:Company,KJMCResearchAsperGovt.estimates, Indianeeds todoubleportcapacity to1,500million

tonnesby201112andwouldrequireinvestmentsworthRs550billioninthat

periodindicatingsignificantgrowthpotentialforthesector.

TheIndiangovernmentcontrolledmajorportswillmissthecapacityaddition

target.Themajor portswould have a capacity to handle 743mn tonnes ofcargobyMarch 31, 2012, comparedwith a target of 1020mn tonnes.With

major ports operating at more than 90% capacity and capacity expansions

plans are delayed we believe port like Mundra would be at an added

advantageduetodoublingofitscapacityandadditionalcargovolumewould

betransferredtoMundra.Itisestimatedthattheportcapacityofacountryat

any given time should be 30% higher than the expected traffic to ensure

efficiencyofoperationsandIndiaislagginginit.

Increaseintheporttrafficisadirectindicatorofboomintrade.Porttraffichas

adirect

co

relation

with

the

GDP.

Cargo

growth

of

6%

y

o

y

in

year

to

date

FY10indicatesthateconomicactivityisbackontrack.AndwithGDPexpected

to grow at 7% in FY10,webelieve the Indian economy has revived and is

lookingbuoyant.

Particular FY04 FY05 FY06 FY07 FY08 FY09

Overall major Port Traffic ( mt) 344.8 383.7 423.6 463.8 519.2 530.4

Minor Port Traffic (mt) 118.9 137.0 150.1 184.9 206.4 212.9

Total Cargo Traffic (mt) 463.7 520.7 573.7 648.8 725.5 743.3

Cargo Traffic growth (%) - (I) 9.9 12.3 10.2 13.1 11.8 2.4

GDP (%) - (II) 8.5 7.5 9.5 9.7 8.8 6.9

Multiplier (i) / (II) 1.2 1.6 1.1 1.3 1.3 0.4

BasedonthelinearrelationshipbetweentheGDPandcargogrowthweexpect

thecargotogrowthataCAGRof8.5%overnextfiveyearsandwillreach1115

mntonnesbyFY14.

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Financial Analysis

Revenue to grow at a CAGR of 28.6% during FY09-FY13ERevenuestogrowataCAGRof28.6%duringFY09FY13EtoRs31032.1mnin

FY13Eandcargovolumetocross100mntonnesinFY13Eledby1)startingof

coalterminal2)pickuplandsalesinSEZ3)rampingupofcontainervolumes

4)increaseincrudeoilvolumefromIOCLandHPCL.

0

5000

10000

15000

20000

25000

30000

35000

40000

FY08

FY09

FY10E

FY11E

FY12E

FY13E

FY14E

(Rsinmn)

05

1015

202530

3540

4550

(%)

Revenues Growth (%)

100m tonnes cargo by FY13E


Low leverage and strong cash flows

MundraPorthasalowdebtequityratioof0.8xduringFY09anditisfurther

expectedtodeclineto0.3xbyFY13E.Thelowleveragemakesthecompanyin

a comfortableposition to raisedebt in future for anygrowthopportunities.

TheMundraPortcashflowsareexpectedtogrowataCAGRof21.3%during

FY09FY13E.

Cash to grow at a CAGR of 21.3% during FY09FY13E Low Leverage Comfortable posit ion

0.0

5000.0

10000.0

15000.0

20000.0

25000.0

30000.0

35000.0

40000.0

FY08 FY09 FY10E FY11E FY12E FY13E FY14E

Rs(inmn)

Debt Equity Ratio

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

FY08 FY09 FY10E FY11E FY12E FY13E FY14E


Cargo Type (in mt) FY09 FY10E FY11E FY12E FY13E FY14E

Bulk 19.3 21.5 19.0 21.0 21.0 21.0

Crude / POL 9.7 10.7 19.0 32.0 34.0 37.0

Containers 6.8 8.8 11.0 19.0 22.0 24.0

Coal Terminal 0.0 0.0 5.0 15.5 26.0 35.0

Total 35.7 41.0 54.0 87.5 103.0 117.0

Growth (%) 24.0 14.7 31.8 62.0 17.7 13.6

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Quarterly Financial Summary (in Rs mn)

Particu lars Q3 FY10 Q3 FY09 y-o-y (%) 9M FY10 9M FY09 y-o-y (%)

Total Income 3378.4 3008.9 12.3 9719.8 8506.2 14.3

Total Expenditure 1047.8 1120.6 -6.5 2851.0 2791.0 2.1

Staff Cost 141.8 89.1 59.1 381.6 262.5 45.4

Adm & Other Exp 202.6 158.7 27.7 540.0 558.8 -3.4

Operating Exp 703.4 872.8 -19.4 1929.4 1969.7 -2.0

EBITDA 2330.6 1888.3 23.4 6868.8 5715.2 20.2

EBITDA margins (%) 69.0 62.8 70.7 67.2

Depreciation 433.1 347.5 24.6 1180.1 980.9 20.3

EBIT 1897.5 1540.8 23.2 5688.7 4734.3 20.2

Interest 80.6 495.1 -83.7 417.7 1443.0 -71.1

Other Income 18.6 23.9 -22.1 264.1 302.1 -12.6

PBT 1835.5 1069.5 71.6 5535.1 3593.3 54.0

Tax 202.9 61.4 230.5 447.1 494.3 -9.5

PAT 1632.6 1008.1 61.9 5088.0 3099.0 64.2

Equity Capital 4006.8 4006.8 0.0 4006.8 4006.8 0.0

EPS 4.1 2.5 61.9 12.7 7.7 64.2


Peer Comparison

EV/EBITDA P/E Price / BV EBITDA (%)Name Country

2010 2011 2010 2011 2010 2011 2010 2011

Shanghai International China 15.9 14.7 28.1 25.8 3.4 3.2 44.5 44.9

Tianjin Port Co. Ltd. China 12.0 10.4 20.4 17.7 2.0 1.8 22.0 22.7

Shenzhen Yantian Port China 43.2 42.2 23.1 21.8 2.5 2.3 55.1 53.9

Rizhao Port Co. Ltd. China 12.9 11.4 24.6 21.2 2.5 2.4 44.7 44.0Yingkou Port LiabilityCo. China 15.1 14.2 41.6 33.5 2.8 2.6 46.8 45.5

Tianjin Port DVLPHLDS Ltd. China 6.6 6.2 24.5 19.3 1.1 1.1 17.3 16.3

Xiamen InternationalHongKong 7.4 6.7 14.0 11.5 0.9 0.8 26.1 28.1

COSCO Pacific Ltd.HongKong 18.8 17.0 15.6 15.1 1.3 1.0 66.4 66.1

Dalian Port (PDA) CoLtd.

HongKong 11.4 10.1 15.5 14.0 1.2 1.2 52.7 52.5

Mundra Port & SEZLtd. India 25.4 17.2 34.7 21.8 7.8 6.1 72.1 72.3

Port of Tauranga Ltd.New

Zealand 13.5 12.6 20.5 19.4 1.5 1.5 60.3 60.7

Source : Bloomberg, KJMC Research

Key Risk & Concerns

Mundra Port hasbeen granted concession agreementby Gujarat Maritime

Boards (GMB) tillFebruary,2031;anycancellation,early terminationornon

renewalofsuchconcessionagreementwouldsignificantlyimpactitsbusiness.

Any slowdown in economicgrowth impacts thevolumegrowthof theport

business.

MundraPorts

ability

to

clinch

deals

for

its

SEZ

space

may

be

threatened

if

the

SEZtaxbenefitsfortheoccupantsarewithdrawn.

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Outlook & Valuations

Mundra Port

WehavevaluedMundraPortbasedonDCFvaluation.Wehaveassumedthe

cashflowforecastassumingtheconcessionperiodtillFY51EandWACCof

11%.ThevalueoftheportbusinesscomestoRs644pershare.(in Rs mn)

Y/E Mar FY11E FY12E FY13E FY14E FY15E FY16E FY17E FY18E FY19E FY31E

Net Profit 5992.6 10611.8 13711.4 17196.5 19033.7 21039.9 23442.5 25957.5 28444.1 59188.4

Depreciation 2138.0 2255.2 2426.2 2390.9 2353.5 2307.8 2260.5 2202.6 2217.6 2397.6

Non-Cash Expenditure 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Interest(1-T) 1186.9 109.9 88.1 66.2 44.3 26.8 13.7 9.3 4.9 1.4

Capital Expenditure -7975.6 2298.6 -1838.9 -919.4 -919.4 -735.5 -735.5 -459.7 -459.7 -459.7(Inc)/Dec in Non-Cash WorkingCapital -1597.4 -6549.9 -2615.9 -2657.3 -1037.7 -1424.4 -1730.2 -1690.7 -1654.4 -2492.3

FCF To Equity -1442.5 8615.8 11682.9 16010.7 19430.1 21187.8 23237.2 26009.6 28547.6 58634.0

Present Value of FCF To Firm -1442.5 7721.6 9383.7 11525.3 12535.2 12250.5 12041.1 12079.0 11881.7 11200.5


WACC 11%

Present value of cumulative FCF (Rs mn) 274888.7

Enterprise Value (Rs mn) 274888.7

Net Debt (Rs mn) 16822.9

Equity value (Rs mn) 258065.8

Shares Outstanding 400.7

Value per share 644.1


SEZ Valuation

We have valued SEZbusiness using discounted cash flowmethod. In our

projectionswehaveonlyassumed thenotified landareaof18,000acres.The

companyhasalreadyacquired23650acresof land forRs300crs.For leasingwehaveassumedandupfrontpaymentofRs65lacsperacreandannuallease

rental of ~ Rs 6 per sq feet. We have assumed the lease rentals and

developmentcosttoincreaseby3%annually.WehaveusedWACCof12.5%.

(in Rs mn)Y/E Mar FY11E FY12E FY13E FY14E FY15E FY16E FY17E FY18E FY19E FY31E

Net Profit 3273.5 3756.8 4333.3 4899.4 5151.3 5411.2 6407.1 6726.6 7054.7 16645.0

FCF To Equity 3273.5 3756.8 4333.3 4899.4 5151.3 5411.2 6407.1 6726.6 7054.7 16645.0

Present Value of FCF To Firm 3273.5 3341.1 3427.5 3446.5 3222.8 3010.9 3170.6 2960.4 2761.3 1595.4


Present value of cumulative cash flows (Rs mn)53959.3

Terminal Value (Rs mn)9948.3

Enterprise Value (Rs mn)63907.6

Shares Outstanding400.1

Value per share159.7


Dahej Port

Dahej port is expected to commence its operations from FY11E and we

expect the port to handle 2 mn tonne in FY11E. We expect the port to

operate at full capacity of 15mtpa in FY17E. We have arrived at value

of Rs 15 per share in using FCFE method by using the cost of equity of

13.5%.

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Mormugao Port

The coal terminal with a capacity of 8mtpa is expected to be operational

by FY12E and it is expected to handle 5 mtpa in first year of operations

i.e. in FY13E. Using FCFE method we arrive at a value of Rs 7 per

share. We have used 13.5% as the cost of equity.

Hazira Port

MPSEZ is developing non LNG facilities like bulk, container and liquid

cargo facilities at Hazira port. The first phase of development includes

3-4 berths and expected to be operational by FY13E. Using FCFE

method we arrive at a value of Rs 16 per share. We have used 13.5% as

the cost of equity.

Volume Assumptions at Dahej, Mormugao and Hazira (mn tones)

Particulars FY11E FY12E FY13E FY14E FY15E FY16E FY17E FY18E

Dahej 2.0 6.0 8.0 10.0 12.0 14.0 15.0 15.0

Mormugao - - 5.0 5.0 5.5 6.0 6.5 7.0

Hazira - - 5.0 7.0 9.0 10.0 12.0 14.0

Total 2.0 6.0 18.0 22.0 26.5 30.0 33.5 36.0


SOTP Valuation Table

Business Segment Basis Discount rate / Multiple Value ( Rs in mn) Value per share

Mundra Port DCF WACC - 11% 258066 644

SEZ DCF WACC - 12.5% 63908 160

Adani Logistics P/BV P/BV of 2 ( 50% discount to that of Concor) 3960 10

Dahej Port FCFE Cost of Equity - 13.5% 5975 15

Hazira Port FCFE Cost of Equity - 13.5% 6504 16

Mormugao FCFE Cost of Equity - 13.5% 2774 7

Total 341186 852


Thecoal terminalatMundra,SPM forHPCLsubsidiary, thenetworkofrail

and ICDs, and SEZ operations would contribute substantially to the

companysearningsgrowthfromFY11Eonwards.Further,SEZdevelopment

would lead to an additional income from the land leases, diversifying its

revenuesandinsulatingitagainstcyclicality.

Wehave

valued

the

company

by

SOTP

method

and

arrived

at

a

target

price

of

Rs852translatingintopotentialupsideof10%.Withrecentrunupinthestock

pricewerecommendAccumulateonthestock.

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Financial Summary

Standalone Profit & Loss Statement Rs. in mn


Income from Operations 8182.1 11351.2 13257.6 17922.2 25727.6 31032.1 36420.4

Growth (%) 40.7 38.7 16.8 35.2 43.6 20.6 17.4

Total Expenditure 2828.0 3734.8 3807.4 5005.5 7131.3 8495.9 9720.5

Operating Expenses 1835.9 2614.1 2473.9 3639.2 5291.7 6207.9 7050.6

Personnel Expenses 266.1 367.0 546.0 575.3 800.8 999.3 1179.7

Administrative & Other Expenses 726.1 753.6 787.5 791.0 1038.8 1288.6 1490.2

EBIDTA 5354.1 7616.4 9450.3 12916.6 18596.3 22536.2 26699.9

EBIDTA margins (%) 65.4 67.1 71.3 72.1 72.3 72.6 73.3

Depreciation 1006.4 1372.4 1635.5 2138.0 2255.2 2426.2 2390.9

EBIT 4347.7 6244.1 7814.8 10778.7 16341.1 20110.0 24309.1

Interest 1062.2 1329.5 703.2 1356.5 1256.5 1006.5 756.5

Other Income 279.0 443.2 350.1 379.1 668.6 977.7 1469.3

PBT and prior period and Extra items 3564.6 5357.8 7461.6 9801.3 15753.1 20081.2 25021.9

Prior Period Items 13.0 217.5 0.0 0.0 0.0 0.0 0.0

PBT and Extra Ordinary Items 3551.6 5140.3 7461.6 9801.3 15753.1 20081.2 25021.9Extra Ordinary Items 116.6 0.0 0.0 0.0 0.0 0.0 0.0

PBT 3668.2 5140.3 7461.6 9801.3 15753.1 20081.2 25021.9

Tax 1534.1 529.2 537.6 856.1 1516.0 1958.8 2456.6

PAT 2134.1 4611.2 6924.0 8945.2 14237.2 18122.4 22565.3


Balance Sheet Rs. in mn


Sources of Funds

Share Capital 4034.9 4034.9 4034.9 4034.9 4034.9 4034.9 4034.9

Reserves & Surplus 22090.2 25417.8 30338.5 36078.2 47109.9 61225.5 79784.0

Shareholders Funds 26125.1 29452.7 34373.4 40113.1 51144.8 65260.4 83818.9

Secured Loans 18847.7 22849.8 27849.8 26849.8 24849.8 19849.8 14849.8

Unsecured Loans 219.8 280.2 280.2 280.2 280.2 280.2 280.2

Total Loans Funds 19067.5 23130.0 28130.0 27130.0 25130.0 20130.0 15130.0Amt. recd/ receivable under long termlease 6811.0 6518.5 6518.5 6518.5 6518.5 6518.5 6518.5

Deferred Tax Liabilities 1774.2 2297.0 2297.0 2297.0 2297.0 2297.0 2297.0

Total Liabi li ties 53777.7 61398.2 71318.8 76058.5 85090.3 94205.8 107764.3

Application of Funds

Fixed Assets

Gross Block 32016.7 37819.5 48819.5 63819.5 67319.5 69319.5 70319.5

Less : Accu. Dept 3598.4 5305.3 6940.7 9078.7 11333.9 13760.1 16150.9

Net Block 28418.3 32514.2 41878.8 54740.8 55985.6 55559.4 54168.6

Capital WIP including capital a/c 4058.3 12325.5 12325.5 6000.0 0.0 0.0 0.0

Investments 10826.6 4317.5 4317.5 4317.5 4317.5 4317.5 4317.5

Currents Assets , L&A 13979.5 15789.1 20568.2 21507.0 36450.3 48246.7 64672.3

Inventories 184.7 264.9 363.2 491.0 704.9 850.2 997.8

Sundry Debtors 2963.4 2116.4 5085.1 6874.3 11277.9 13603.1 15965.1

Cash & Bank Balances 8895.6 11307.1 11669.2 9477.0 16714.1 24441.3 36733.4

Other Current Assets 451.4 522.3 726.4 982.0 1762.2 2125.5 2494.5

Loans & Advances 1484.5 1578.3 2724.2 3682.6 5991.4 7226.7 8481.5

Less: Curr Liab. & Provisons 3505.1 3548.1 7771.1 10506.7 11663.1 13917.8 15394.0

Current Liabilities 2554.3 3079.3 5699.6 7233.1 8389.5 9842.8 11319.1

Provisions 950.9 468.8 2071.6 3273.6 3273.6 4075.0 4075.0

Net Current Assets 10474.4 12241.0 12797.0 11000.3 24787.2 34329.0 49278.3

Total Assets 53777.7 61398.2 71318.8 76058.5 85090.3 94205.8 107764.3


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Ratios


Profitability and Return Ratios

EBIDTA Margin (%) 65.4 67.1 71.3 72.1 72.3 72.6 73.3

Net Profit Margin (%) 40.6 52.2 49.9 55.3 58.4 62.0 65.5

EPS 5.3 11.5 17.3 22.3 35.5 45.2 56.3

CEPS 7.8 14.9 21.4 27.7 41.2 51.3 62.3BVPS 64.7 73.0 85.2 99.4 126.8 161.7 207.7

Dividend Yield (%) 0.19 0.39 0.65 1.03 1.03 1.29 1.29

ROE 8.2 15.7 20.1 22.3 27.8 27.8 26.9

ROACE 10.6 10.8 11.8 14.6 20.3 22.4 24.1

Operating Efficiency and Other Ratios

Debtors T/o (x) 2.8 5.4 2.6 2.6 2.3 2.3 2.3

Interest Coverage (x) 4.1 4.7 11.1 7.9 13.0 20.0 32.1

Asset / Turnover (x) 0.2 0.2 0.2 0.2 0.3 0.3 0.3

D/E (x) 0.7 0.8 0.8 0.7 0.5 0.3 0.2

Valuation Ratios

P/E (x) 145.5 67.3 44.8 34.7 21.8 17.1 13.8

P/CEPS (x) 98.9 51.9 36.3 28.0 18.8 15.1 12.4

P/BV (x) 12.0 10.6 9.1 7.8 6.1 4.8 3.7

Mcap / Sales (x) 38.0 27.4 23.4 17.3 12.1 10.0 8.5

EV / Sales (x) 39.2 28.4 24.7 18.3 12.4 9.9 7.9

EV / EBIDTA (x) 59.9 42.3 34.6 25.4 17.2 13.6 10.8


Cash Flows Rs. in mn

Particulars FY08 FY09 FY10E FY11E FY12E FY13E FY14E

Pre-tax Profit 3551.6 5140.3 7461.6 9801.3 15753.1 20081.2 25021.9

Depreciation & Non Cash 1006.4 1372.4 1635.5 2138.0 2255.2 2426.2 2390.9

Interest & Others 386.0 523.6 703.2 1356.5 1256.5 1006.5 756.5

Changes in Workin Capital 290.8 140.6 -1796.7 -1597.4 -6549.9 -2615.9 -2657.3

Tax Paid -43.2 -226.2 -537.6 -856.1 -1516.0 -1958.8 -2456.6

Operating Cash Flow 5191.5 6950.7 7466.0 10842.2 11199.0 18939.1 23055.4

Capex -9394.4 -12312.6 -11000.0 -8674.5 2500.0 -2000.0 -1000.0

Free Cash Flow -4202.9 -5361.9 -3534.0 2167.7 13699.0 16939.1 22055.4

Investment -1825.0 1188.6 0.0 0.0 0.0 0.0 0.0

Equity Capital 17187.0 -75.4 0.0 0.0 0.0 0.0 0.0

Loans 6136.4 2922.6 5000.0 -1000.0 -2000.0 -5000.0 -5000.0

Dividend 0.0 -1402.6 -400.7 -2003.4 -3205.4 -3205.4 -4006.8

Others -8726.5 5140.1 -703.2 -1356.5 -1256.5 -1006.5 -756.5

Net Change in Cash 8568.9 2411.5 362.1 -2192.2 7237.1 7727.2 12292.1

Opening Cash Position 326.7 8895.7 11307.1 11669.2 9477.0 16714.1 24441.3

Closing Cash Posit ion 8895.7 11307.1 11669.2 9477.0 16714.1 24441.3 36733.4


7/31/2019 mundra_port_300310_01

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Mr.GirishJain ExecutiveDirector [email protected] 22885201(B)

Mr.SureshParmar A.V.P. InstitutionalEquities [email protected] 40945551(D)

Mr.VipulSharma A.V.P. InstitutionalSales [email protected] 40945556(D)

RecommendationParameters

Expectedreturnsinabsolutetermsoveraoneyearperiod

Buy appreciatemorethan20%overa12 monthperiod

Accumulate appreciate10%to20%overa12 monthperiod

Hold/Neutral appreciateupto20%overa12 monthperiod

Reduce depreciateupto10%overa12 monthperiod

Sell depreciatemorethan10%overa12 monthperiod

Disclaimer :This publication has been prepared from information available on public domain and doses not constitute a solicitation to any person to buy or sell a security. The informationcontained therein has been obtained from source believed to be reliable to the best of our knowledge. KJMC Capital Market Services Ltd. dose not bear any responsibility for theauthentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further KJMC only provides informationupdates and analysis. All option for buying and selling are available to investors when they are registered clients of KJMC Capital Market Services Ltd. As per SEBIrequirements it is stated that, KJMC Capital Market Services Ltd. , and/or individuals thereof may have positions in securities referred herein and may make purchases or salethereof while this report is in circulation

The National Stock Exchange (EQ, WDM)

The National Stock Exchange (Derivatives )

The Stock Exchange, Mumbai

: SEBI Regn. No. INB 230719932

: SEBI Regn. No. INF 230719932

: SEBI Regn. No. INB 010719939

MCX-SX Currency

MCX-Commodity*

Mutual Funds AMFI No.

: INE260719932

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Member

* Under KJMC Commodities Market India Ltd

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