Mundra Port and Special Economic Zone

Market Details as on 31st October, 2009.

Total Shares Issued – 400678820 shs of Rs. 10 each.

Shares Issued at IPO- 40250000 shs at Rs. 440 Nov 2007.

Promoters Holdings- 324719561 shs -81.03%.

Market Capitalization- Rs. 20047.96 cr.

Current Market Price – Rs. 500.35.

Book Value per Share- Rs. 73.44, Earning per Share- Rs. 14.91, Dividend- Rs.3/sh.

Price to Earning Ratio – 33.56, Industry P/E- 42.20, Price to Book- 6.81 times.

52 Week – High- Rs. 705, Low- Rs. 253.65.

200 Daily Moving Average- Rs. 478.25.

Total Debt – Rs. 2313 cr, Total Reserve- Rs. 2541.78 cr

FINANCIALS:-As on 30th September 2009

Total Income Rs.337.33 cr v/s Rs. 303.78 cr (YOY), Net profit increased 56 % to Rs. 174.78 cr v/s 112.28 cr (YOY), half yearly Net Sales of Rs. 634.13 cr, and Net Profit of Rs. 345.54 cr posting an EPS of Rs. 8.32.

Mundra port is India’s largest private sector port promoted by Adani group.

Mundra port has notified multi-product SEZ area of 5920 hectares, from which it is currently developing the area of 130 sq km. the Co. has its own railways which handled close to 4500 rakes in yr 2008-09; has Dry Cargo Port - has handled largest container vessel- MV BAUDELAIRE (300.40 mtrs), the port now handles 6500-7000 vessels; Co. has container terminal with highest gross crane productivity of 55.24 Moves Per Hour (MPH) , highest average crane productivity of 33 MPH in country; Company has signed an agreement with Maruti Suzuki to export cars from the Auto terminal- total car exported in last 3 months of 2008-09 is 18911 cars; Co. has handled 2.2 lacs Metric Tonnes of liquid cargo.

For the financial yr 2008-09 Mundra port has handled 2171 vessels v/s 1624 in yr 2007-08. Its cargo handling capacity increased by 33.68 % to 3.60 cr tonnes.As per the records, India’s 95 % of external trade by volume & 70 % by value comes by Sea. Cargo handling volume in 12 major ports in India was at 53 cr Tonnes, while non-major ports contributed 21 cr Tonnes during 2008-09, aggregating to 74 cr Tonnes. Mundra port, the largest private sector non-major port, with a cargo capacity of around 3.6 cr Tonnes in FY09 is among the Top 10 ports in India. India needs to double its port capacity to 150 cr Tonnes by 2011-12 & would require investments worth Rs.55000 cr in that period indicating significant potential for the sector.

A LITTLE STORY ON MARKETS

There was a small village, everyone in that village were living happily, one day someone from big city came with his assistant, he said - "I will give Rs. 10 for every monkey you catch, and bring it to me", villagers started catching monkeys, soon villagers found a new job. They caught monkeys and sold to that stranger & made good money, after a while they lost interest. The stranger said - "I will give you Rs. 15 for every monkey", more monkeys came in, after a while the price of monkey went up to Rs. 60 !!! Suddenly one day the stranger was out of the village his assistant said - "Look this guy does not pays me much, I want to sell all his monkeys at Rs. 50/each so when he comes back you can sell it back to him for Rs. 70" - the villagers agreed -The assistant sold all the monkeys to the villagers for Rs. 50 and went out of the village. Villagers were now left with their monkeys & still waiting........for the Stranger and his assistant to come... but none of this two came back & left villagers with their monkeys worth nothing...while that strangers made money out of nothing....

THE MORALE OF THE STORY - 

The villagers are we small Investors , our stocks are the monkeys and FII’s (Foreign Institutional Investors) are those strangers !!!

Lets us all learn the lesson, 

IPO DETAILS: PIPAVAV SHIPYARDS LTD

Price Band- Rs.55-60, Face Value- Rs.10
Issue opens on- 16th September 2009, Wednesday
Issue closes on- 18th September 2009, Friday
QIB Book- 5,09,10,135 shares (60% of Net issue)
HNI Book- 84,85,022 shares (10% of Net issue)
Retail Book- 2,54,55,068 shares (30% of Net issue)
Employee Reservation- 6,00,000 shares
Total No. of Shares offered- 8,54,50,225 shares or 12.8%
Equity Shares outstanding after the Issue--665,798,388 Sh
Equity Shares outstanding prior Issue-580,348,163 Sh
Total Size of the Issue- Rs. 469.97 Crs. - Rs. 512.7 Crs. (Approximately)
Lead Manager- Kotak, SBI, Enam, Motilal, JM, and Citigroup
Registrar- Karvy Computershare Private Limited.
Debt equity ratio- 0.7:1


Major PE investors-
Punj Lloyd currently holds 22.34% stake in the company at Rs.27, Amout- Rs 350cr. Sea King Infra(SKIL)at Rs.10 and they combine holds 45.5% stake.
Trinity capital- Rs.25, Amount- Rs.114.75cr, Post issue holding- 6.89%, 2i capital- Rs.25, Amount- Rs.100cr, Post issue holding- 6.01%, New York Life Investment Management India Fund(NYLIM)- Rs.25, Amount- Rs.66.52cr, Post issue holding- 4%, Citadel MT Trading- Rs.45, Amount- Rs.103.5cr, Post issue holding- 3.45%, SCB Asian Infrastructure Fund- Rs.45, Amount- Rs.51.75cr, Post issue holding- 1.73%, Blackstone, Merrill Lynch, Galleon, Manz Retail (a Future Group entity), Deutsche Bank -All at Rs.80/Sh- below 1% - stakes in the firm.
Other are Infrastructure Leasing & Finance Services (IL&FS), Export Import Bank of India (EXIM Bank), UTI Mutual Fund and Industrial & Development Bank of India (IDBI).


Company details-Pipavav is located on the south western coast of Gujarat and claims that it will be the biggest shipyard upon completion in India. The shipyard is spread over an area of 198.92 hectares, which also comprises of a special economic zone (SEZ).It plans to use the proceeds for the construction of shipbuilding facilities, repair and offshore business and for general corporate purposes.


Valuations- The net worth of Company was Rs. 12,55.076cr as of March 31, 2009. The book value per Equity Share was Rs.21.63 as of March 31, 2009 Pipavav is being valued at 1.1X EV/Order book even at the lower end of the price band. This is as compared to 0.2X for Indian shipyards and 0.3-0.5X for global shipyards, said investment bank Noble Group in its research note. Given the uncertain order book, the valuation seem to be a little aggressive.
Pipavav has said that it has an order book of $920 million, which includes 12 offshore supply vessels from ONGC and an order for 22 dry bulk carriers from three European shipping companies. The order with the European customers is being renegotiated given the downturn,though the impact on order book is not known.
Pipavav Shipyard, co-owned by SKIL Infrastructure and Punj Lloyd, is building a shipyard in Gujarat at a cost of about Rs 3,000 crore, of which it has already spent Rs 2,086 crore.