MUNDRA PORT Stay Invested For Long Term

Mundra Port witnessed its net profit increase by 92.23% on a YoY in the third quarter of the current financial year, ended December 31, 2008, mainly due to increased cargo traffic. It had handled 26.2 million tonnes of cargo versus 20 million tones for the nine month period of FY09, a growth of 29%.

This growth of Mundra comes as a surprise as most of the ports around the country saw of growth of just around 7-8% and due to the overall slowdown , ports on a macro level are expected to see a fall in cargo handling, especially in January and February. Mundra too is expected to feel the effect of the slowdown in the fourth quarter to some extent but should be able to bounce back by March.

The Dahej port is estimated to go on stream in second half of 2010. Mundra has started handling car exports for Suzuki and the first consignment of over 1,570 cars went to UK and Italy in January. Mundra Port is also expanding its cargo handling capacity to 50 million tonnes by 2010, from 30 million tonnes now. This is set to more than double to 120 million tonnes by 2015. The company’s new coal terminal, with a capacity to handle 35 million tonnes a year, is expected to be ready by 2010.

Mundra had come out with its IPO in 2007 and collected Rs 1,771 crore, has so far utilised Rs 824.89 crore while Rs.946.11 crore remained unutilized.

Stay invested as long term prospects of the company look good and buy at every dip. thanks