Buy Mundra Port & Sez With a target of Rs 723/-

MPSEZ reported Q1FY09 pre-exceptional PAT at Rs1.09bn (+550% yoy) sharply ahead of estimates (Rs579mn), led by strong operating performance of the Mundra port and ~88 acres of SEZ land sales. Q1FY09 revenues grew by 106% yoy led by a 40% yoy growth in port volumes and Rs380mn od upfront lease premium from lease of land
in the SEZ. EBITDA margins expanded by 1,240bps to 69.8% mainly due to booking of SEZ land leases and a relative increased proportion of higher margin food grains and sugar volumes handled at the port. Consequently, EBITDA increased by 150% yoy to Rs1.78bn, ahead of estimates of Rs1.15bn.