Mundra Port and Special Economic Zone Limited (MPSEZ), India’s largest private port and special economic zone, was incorporated as Gujarat Adani Port Limited (GAPL)
in 1998 to develop a private port at Mundra, on the west coast of
India. The company commenced commercial operations in October 2001. Mundra Special Economic Zone Limited (MSEZ)
was incorporated in November 2003, to set up an SEZ at Mundra. MSEZ was
merged with GAPL in April 2006. The company was renamed as Mundra Port
and Special Economic Zone Limited, to reflect the nature of business. Mundra Port provides cargo handling and other value-added
port services. Mundra SEZ is India’s first port-based multi-product
Sure Mundra port has three segments, Port , SEZ and CT-II. Earning of Rs 8 per share can not justify a market cap of 21000 Cr and p/e of more than 50. Not considering the amount of debt it has in balance sheet.
There could be a case for growing Indian economy and growing requirement for port services due to higher import and exports. Specially Coal, Iron Ore and OIL are big commodities with high port turnover.
At such high valuation this provides little solace if market tanks tomorrow. Company is very much directly tied to fortunes of capital expenditure and economical expansion.
No doubt this is great company , I am just not convinced that it deserves this valuation. I would recommend to avoid this stock if you are investor. Until stocks comes back to more reasonable valuation level.