Motilal Oswal Financial Services

Thematics | February 2025

Ports

Anchoring solutions | Navigating success

Growth on a fast-track mode!



Major Ports Capacity (MMT)



Budget outlay for ports sector

India’s ports sector is a vital pillar of its trade and economic framework,

managing 95% of the country’s export volumes and 70% of its export values.

Spanning a coastline of ~7,500km and aided by 20,275km of national

waterways across 24 states, the sector benefits from its strategic location in

the Indian Ocean. This positioning aligns India with 80% of the global maritime

oil trade, underscoring its potential to become a leading maritime player.

The country’s port infrastructure includes 13 major ports and 205 non-major

ports, which together handled a cargo volume of 1,539MMT (major ports

handled 819MMT in FY24 and 699MMT over Apr’24-Jan’25), backed by an

overall capacity of 2,604MTPA.

The ports operate under diverse management models, such as public-private

partnerships in the landlord model, fully state-managed service ports, privately

owned service ports, and hybrid tool ports with shared responsibilities.

The Indian ports sector is poised for significant growth. Between FY23 and

FY28, the country’s ports are projected to add 500-550MTPA of capacity

annually, driven by increased handling of petroleum, oil, lubricants (POL), coal,

and containerized cargo. Cargo traffic is expected to grow at a steady annual

rate of 3-6%, stabilizing utilization levels at ~55% over the medium term.

Container traffic growth is anticipated to report an annual growth rate of 4-7%

over the next five years, bolstered by rising imports, declining freight costs,

and a normalization of global supply chains. Transshipment, which accounts

for roughly 25% of India’s container throughput, continues to be a crucial

segment, with ports like Chennai playing a significant role.

Adani Ports & SEZ (APSEZ; 15% volume CAGR over FY19-24) and JSW

Infrastructure (JSWINFRA; 25% volume CAGR over FY19-24) have outgrown

the industry’s CAGR of ~5% through aggressive capacity expansion, strategic

acquisitions, and integrated logistics solutions. While the industry growth rate

is expected to be 4-7% over the next five years, both APSEZ and JSWINFRA are

poised for sustained growth of 2-3x the industry, supported by continued

organic and inorganic expansions and integrated logistics solutions. Both of

these companies are likely to gain market share. Hence, we reiterate our BUY

rating on APSEZ and JSWINFRA. JSWINFRA is our top pick in the ports domain.

Major/non-major ports to play pivotal roles in the overall development of the sector

India’s port ecosystem comprises major and non-major ports, each playing distinct

roles. Major ports, managed by the central government, are primarily located near

industrial hubs and handle diverse cargo types based on regional demands. For

instance, Paradip and Mormugao handle substantial volumes of coal and iron ore,

while Kandla focuses on petroleum products. However, major ports face congestion

challenges due to shared access channels.

In contrast, non-major ports, governed by state governments or private operators

through public-private partnerships, manage nearly half of India’s cargo. These ports

benefit from greater flexibility, operational efficiency, and lower congestion. In

FY23, non-major ports reported a 7.6% increase in cargo traffic, outperforming the

4.7% growth recorded at major ports.

February 2025

PORTS

Policy support and initiatives such as the Sagarmala project bode well for the sector

The Indian government has introduced several policies and initiatives to enhance

port capacity and operational efficiency. The Sagarmala Programme, launched in

2016, is a flagship initiative aimed at reducing logistics costs for export-import

(EXIM) and domestic cargo. The program seeks to increase port capacity to 3,300

MTPA by 2025, supported by investments totaling INR 6t across 800 projects. It is

expected to save INR 350-400b annually by optimizing logistics efficiency and

reducing transportation time.

Another transformative initiative, the Maritime Amrit Kaal Vision 2047, aims to

develop six mega ports with world-class infrastructure and boost India’s total port

handling capacity from 2,500 MTPA to 10,000 MTPA by 2047. This vision includes

achieving 100% cargo handling at public-private partnership (PPP) berths and

integrating advanced digital technologies into port operations.

Valuation and view: Outlook remains bright

India’s ports sector is crucial to its trade ambitions and economic growth. With

focused policy support, private investments, and infrastructure development under

initiatives such as Sagarmala and the Maritime Amrit Kaal Vision 2047, India is well-

positioned to emerge as a global maritime hub. However, addressing challenges

related to policy delays, connectivity gaps, and environmental concerns will be the

key to unlocking the sector's full potential.

India's extensive coastline and increased investments in inland waterways, coastal

shipping, and port privatization initiatives by the government are expected to

benefit companies like APSEZ and JSWINFRA, enabling them to handle a larger share

of volume at Indian ports.



APSEZ (BUY) – The largest private port operator in India:

APSEZ continues to gain

market share while generating strong cash flows and retaining its leverage

position, with a net debt-to-EBITDA ratio of 2x as of Sep’24. We expect APSEZ to

PAT over FY24-27. With consistent outperformance in cargo volumes,

reiterate our BUY rating with a TP of INR1,400 (based on 15x Sep’26 EV/EBITDA).



JSWINFRA (BUY) – Scouting for organic and inorganic expansions:

Considering

stable growth levers at its existing ports and terminals, a higher share of third-

party customers, sticky cargo volume from JSW Group companies, and an

expanding portfolio, we expect JSWINFRA to strengthen its market dominance,

leading to a 14% volume CAGR over FY24-27. This should drive a 22% CAGR in

revenue and a 21% CAGR in EBITDA.

We reiterate our BUY rating with a revised

TP of INR330 (premised on 22x Sep’26 EV/EBITDA). JSWINFRA is also our top

pick in the ports domain.

Key risks



Despite its growth potential, the sector faces several challenges. Policy

uncertainty, such as delays in the National Ports Policy, has hindered

investment. Infrastructure gaps, including inadequate last-mile connectivity and

insufficient dredging, have limited port efficiency and scalability. Environmental

and social concerns, such as land acquisition delays and ecological impacts, have

slowed project execution.



Additionally, global economic volatility and commodity price fluctuations pose

risks to port traffic, while privatization has raised concerns over revenue-sharing

disputes and potential monopolization by large private players.

February 2025

PORTS

STORY IN CHARTS

Investment argument

Major/non-

major ports to

play pivotal

roles in the

overall

development

of the sector

Policy

support and

initiatives

such as the

Sagarmala

project bode

well for the

sector

Key Focus Areas

Enhancing connectivity

between ports and

hinterland via road, rail,

and inland waterways to

ensure smooth cargo

movement

Reducing the cost of

transporting domestic

cargo through

optimizing the model

mix

Reducing logistic costs

of bulk commodities by

locating future

industrial capacities

near the coast

Reduction of logistic

costs for EXIM and

domestic trade with

minimal infrastructure

investment

Optimizing time/costs

of EXIM container

movement

Improving export

competitiveness by

developing port-

proximate discrete

manufacturing clusters

Source: MOFSL

February 2025

PORTS

STORY IN CHARTS

Major ports in India

Kolkatat

Paradip

Port Blair

Visakhapatnam

Kandla

Mumbai

Mogugao

Ennore

Chennai

V.O

Chindambaranar

Cochin

New

Mangalore

Lakshadweep

Source: IBEF, MOFSL

Cargo traffic at major and non-major ports in India

Cargo traffic at Non- major ports (MMT)

Cargo Traffic at Major Ports (MMT)

Share of cargo traffic at major and non-major ports in India

Major Ports

Non- major Ports

583

699

615

705

577

673

604

720

650

720

800

45%

47%

46%

45%

47%

45%

783

819

950

55%

53%

54%

55%

53%

55%

FY19 FY20 FY21 FY22 FY23 FY24

FY28E

FY19 FY20 FY21 FY22 FY23 FY24

FY28F

Business model of the domestic port sector

Landlord port

model

February 2025

Service port

model

Private service

port model

Tool port

model

PORTS

Investment argument

Adani Ports & SEZ

Strong volume

growth

Market share

gains driven by

operational

efficiencies

India’s largest

third-party marine

service provider

with the most

extensive capital

dredging

capacity

Transforming

into an

integrated

logistics

solutions

company

Investment argument

JSW Infrastructure

Geographically

diversified port

locations

Volume growth to

remain robust

Scouting for

organic and

inorganic

expansions

To enhance

capacity to

400MMT by 2030

through capex

Strategic

importance to JSW

Group

VOLUME CAGR OF ADANI PORT & SEZ AND JSW INFRASTRUCTURE

Adani Ports & SEZ

JSW Infrastructure

volume CAGR

FY19-24

15%

volume CAGR

FY19-24

25%

February 2025

PORTS

Overview of the ports sector in India

The port infrastructure plays a pivotal role in a country’s economic success. India,

with a coastline spanning ~7,500kms, relies on ports to handle nearly 95% of its

export volume and 70% of its export value. Essential commodities such as iron ore,

coal, crude petroleum, and other goods are imported via sea routes.

India also has 20,275kms of national waterways across 24 states. Positioned in the

Indian Ocean, which supports 80% of global maritime oil trade, India is well-placed

to leverage its growing maritime trade. As India targets a USD5t economy, ports will

be key to its growth.

Business model of the domestic port sector



There are four important port management and administrative models:

Landlord port model:

The landlord port model involves public-private

participation, with the port authority acting as a regulator and landlord while

private companies handle operations like cargo handling. It is common in

medium and large ports, offering significant opportunities for private players.

Indian ports increasingly follow the landlord port model, where private

operators are granted concessions to operate ports for periods, typically 30

years.

Service port model:

Under this model, the port authority, governed by the state

or central jurisdiction, owns the land and assets, performs regulatory functions,

and employs all cargo-handling labor.

Private service port model:

In this model, private companies own the land and

handle all regulatory and operational activities, with no direct government

involvement.

Tool port model:

This model splits responsibilities between the port authority

and private operators. The port authority owns, maintains, and operates

infrastructure and equipment, while private operators handle other operations

like stevedoring.



India has 13 major ports. Under the national perspective plan for Sagarmala, six new

mega ports will be developed in the country. As of FY24, India’s key ports have a

capacity of 1,617 MTPA. Total cargo handled at major ports in India was 819 MMT in

FY24 (699MMT of cargo handled over Apr’24-Jan’25).

Exhibit 1: Cargo capacity at major ports (MMT)

Major Port Capacity (MMT)

Exhibit 2: Cargo traffic at major ports

Major Port Cargo (MMT)

69% 67%

63% 61%

47% 46% 46%

43%

45% 48%

51%

Major Port Utilisation

Source: IPA, MOFSL

February 2025

PORTS

The Government of India

(GoI) has launched

several policy initiatives

to enhance the efficiency

of water and port

transportation, notably

the Maritime Amrit Kaal

2047 vision and the

Sagarmala project

Favorable policies assisting port operations



The government has allowed FDI of up to 100% under the automatic route for

projects related to the construction and maintenance of ports and harbors.



The cumulative FDI equity inflow in Indian ports was USD1.6b from Apr’00 to

Sep’23.



Private ports enjoy price flexibility as the government allows non-major ports to

determine their tariffs in consultation with the State Maritime Boards. At major

ports, tariffs are regulated by the Tariff Authority for Major Ports (TAMP).

Maritime Amrit Kaal Vision 2047

India aims to develop six mega-ports with a capacity of over 500 MTPA each by 2047

as part of its ambitious maritime expansion plans, significantly increasing its cargo

handling capacity as outlined in the Amrit Kaal Vision 2047. Presently, the nation’s

port handling capacity is over 2,500 MTPA, with 51% of cargo handled at PPP berths

of major ports. The focus is on increasing the port handling capacity to over 10,000

MTPA by 2047 and ensuring 100% of cargo is handled at PPP berths.

Development of Waterways: The Sagarmala Program

The “Sagarmala” initiative was rolled out in Apr’16 by the GoI to reduce logistics

costs for both domestic and export-import cargo with optimized infrastructure

investment. The Sagarmala Program aims at enhancing India’s port capacity to over

3,300 MTPA by 2025. According to the Ministry of Shipping, this would include 2,219

MTPA of capacity at major ports and 1,132 MTPA at non-major ports by 2024-25. As

part of this program, more than 574 projects worth INR6t have been identified for

implementation during CY15-35.

Sagarmala is aimed at reducing logistics costs for EXIM and domestic cargo, leading

to overall cost savings of INR350-400b. Some of this will be direct cost savings, while

others are savings from inventory-handling costs, resulting from time and reduced

variability in the transportation of goods, particularly containers.

Exhibit 3: The Sagarmala Project – status (as of Apr’24)

Particulars

Port Modernization

Port Connectivity

Port-led Industrialization

Coastal Community Development

Coastal Shipping and IWT

Total

Completed

Project

Number of

Cost

Projects

(INR b)

321

580

459

262

1,406

Under Implementation

Number of

Projects

217

Project Cost

(INR b)

757

680

1,639

Total

Project

Number of Project Cost Number of

Cost

Projects

(INR b)

1826

234

2904

131

804

279

2064

560

116

125

231

147

360

2,746

839

5,791

Under Development

Source: Ministry of Ports, Shipping and Waterways, MOFSL

February 2025

PORTS

Key Focus Areas

Enhancing connectivity

between ports and

hinterland via road, rail,

and inland waterways to

ensure smooth cargo

movement

Reducing the cost of

transporting domestic

cargo through

optimizing the model

mix

Reducing logistic costs

of bulk commodities by

locating future

industrial capacities

near the coast

Reduction of logistic

costs for EXIM and

domestic trade with

minimal infrastructure

investment

Optimizing time/costs

of EXIM container

movement

Improving export

competitiveness by

developing port-

proximate discrete

manufacturing clusters

Source: MOFSL

February 2025

PORTS

Infra development the key to growth for the ports sector

The GoI has been consistently increasing budgetary support for the Ministry of

Ports, Shipping, and Waterways to strengthen maritime infrastructure and enhance

India's logistics and trade efficiency. Key focus areas for these investments include:

Development of port infrastructure:

Enhancing capacity and operational

efficiency of major and minor ports.

Modernization of inland waterways:

Promoting inland water transport for cost-

effective and sustainable logistics.

Maritime connectivity:

Integrating ports with rail and road networks to boost

seamless cargo movement.

Support for the Sagarmala Program:

Aligning budget outlay with long-term

initiatives under the Sagarmala project to reduce logistics costs and promote

coastal economic zones.

Exhibit 4: Increasing budgetary allocation for the ports sector

Outlay for Ports under respective Union Budgets (INR b)

54.2

40.6

29.3

26.5

31.6

62.3

The GoI is boosting

budgetary support to

enhance maritime

infrastructure, focusing on

ports, waterways,

connectivity, and the

Sagarmala Program.

FY20

FY21

FY22

FY23

FY24

FY25

Source: Union Budget 2025, MOFSL

The increasing budgetary allocations underscore India's commitment to becoming a

global maritime hub and improving its ranking in the global logistics performance

index.

February 2025

PORTS

Major ports vs. non-major ports

Major and minor ports are the two types of ports in India. Major ports are owned

and operated by the Central government, while minor ports are owned and

operated by respective state governments/State Maritime Boards.

India has 13 major ports (12

government-owned, one

private) and 205

minor/intermediate ports

India has 205 designated minor and intermediate ports that handle a significant

amount of cargo, in addition to 13 major (12 government-owned and one private)

seaports.

All the 13 major ports are functional. Of the 205 non-major ports, around 65 ports

are handling cargo, and the others are “Port Limits” where no cargo is handled.

These are used by fishing vessels and by small ferries to carry passengers across the

creeks, etc.

Non-major ports typically have lesser congestion levels vis-à-vis major ports, as for

major ports the access channel is shared by multiple berths. The cargo ramp-up

possibility at non-major ports is also higher as infrastructure can be created as per

business planning and strategic partnerships.

Exhibit 5: Cargo traffic at major and non-major ports in India

Cargo Traffic at Major Ports (MMT)

Cargo traffic at Non- major ports (MMT)

583

699

FY19

615

705

FY20

577

673

FY21

604

720

FY22

650

783

FY23

720

819

FY24

800

950

FY28E

Source: IBEF, MOFSL

Cargo traffic at major and

non-major ports is expected

to grow in the range of 3-

6% over FY24-28

Exhibit 6: Share of cargo traffic at major and non-major ports in India

Major Ports

Non- major Ports

45%

47%

46%

45%

47%

45%

55%

FY19

53%

FY20

54%

FY21

54%

FY22

55%

FY23

53%

FY24

55%

FY28F

Source: IBEF, MOFSL

February 2025

PORTS

Overview of the major ports in India

Major ports primarily generate revenue through port services, royalties, and

revenue shares from terminal operators.

Hinterland consumption patterns heavily influence cargo types handled at ports. For

example, ports near industrial hubs in Maharashtra, Tamil Nadu, and Karnataka

manage diverse cargo, while those near refineries, such as Kandla and Cochin,

handle Petroleum, Oil, and Liquid (POL) traffic. Ports near mining areas, such as

Paradip and Mormugao, experience significant coal and iron ore volumes.

Exhibit 7: Major ports in India

Kolkatat

Paradip

Port Blair

Visakhapatnam

Ennore

Kandla

Mumbai

Mogugao

New

Mangalore

Cochin

Lakshadweep

Chennai

V.O

Chindambaranar

Source: IBEF, MOFSL

February 2025

PORTS

Exhibit 8: Details of the major Indian ports

Port

East Coast

Kolkata / Haldia

Paradip

Vizag

Chennai

Tuticorin

Ennore

Port Blair

West Coast

Cochin

New Mangalore

Mormugao

Mumbai

JNPA

Kandla

State

West Bengal

Orissa

Andhra Pradesh

Tamil Nadu

Andaman Island

Kerala

Karnataka

Goa

Maharashtra

Gujarat

Year of

Incorporation

1970

1966

1933

1875

1974

2001

2010

1936

1974

1963

1873

1989

1952

Type



All weather - riverine port

All weather - artificial lagoon port

All weather - natural harbor

All weather - artificial harbor with wet docks

All weather - artificial deep sea harbor

All weather - artificial harbor

All weather - natural harbor

All weather - artificial lagoon port

All weather - open protected harbor

All weather - natural harbor

All weather - tidal port

All weather - natural harbor

Source: IPA, MOFSL

Exhibit 9: Cargo traffic at major Indian ports

Cargo Traffic at Major Ports (MMT)

819

950

699

705

673

720

783

FY19

FY20

FY21

FY22

FY23

FY24

FY28E

Source: IPA, IBEF, MOFSL

February 2025

PORTS

Overview of the non-major ports in India

Non-major ports in India, managed by state governments, play a vital role in the

country's maritime trade, handling nearly half of the total cargo traffic. They

complement major ports by catering to regional industries and specialized cargo like

coal, petroleum, and agricultural products.

Non-major ports, managed

by states, handle nearly half

of India's cargo, supporting

regional industries with

PPP-driven efficiency

Most of the non-major ports operate under public-private partnership (PPP) models

or private ownership, offering greater flexibility and efficiency. Strategically located

near industrial hubs and mineral-rich regions, they support regional economic

development. However, challenges like smaller capacities, infrastructure gaps, and

varying state policies persist. The Sagarmala Programme aims to modernize these

ports, enhancing their contribution to India’s growing trade ecosystem.

Exhibit 10: Key non-major ports across states

State

Maharashtra

Gujarat

Andaman & Nicobar

Kerala

Tamil Nadu

Andhra Pradesh

Odisha

Karnataka

Goa

Pondicherry

Number of non-major ports

Source: IBEF, MOFSL

High entry barriers in the

sector pose a significant

advantage to existing

players

The key entry barriers in the port sector include high capital requirements, with

greenfield projects demanding significant investments (e.g., INR10-15b for a one-

million TEU terminal). Projects also have long gestation periods, often exceeding five

years, and require robust hinterland connectivity. Strict regulatory criteria and the

dominance of a few established players further limit new entrants, emphasizing the

need for technical expertise and operational efficiency.

These 205 non-major ports handle ~45-50% of the nation’s total cargo volume,

managing diverse commodities such as coal, petroleum, iron ore, and agricultural

products.

Exhibit 11: Cargo traffic at non-major Indian ports

Cargo traffic at Non- major ports (MMT)

615

650

720

800

583

577

604

FY19

FY20

FY21

FY22

FY23

FY24

FY28E

Source: IBEF, MOFSL

February 2025

PORTS

Capacity additions and utilization of ports in India

In FY24, port utilization levels remained stable at around 50. Deferred port capacity

expansion and capital expenditure from FY21 due to COVID-19 are expected to

recover, with capacity additions projected at 2-4% annually over the next five years.

Port traffic is driven by

mineral, steel, cement,

power, and manufacturing

clusters, with key mineral

hubs in Odisha, Jharkhand,

Chhattisgarh, and

Karnataka, and major

industries strategically

located near resources or

ports

Indian ports will add 500-550MMT of capacity during this period, driven primarily by

the POL (including LNG and LPG) segment, followed by coal and containers.

Major ports, such as Visakhapatnam, Paradip, Kandla, Ennore, Mumbai, Tuticorin,

and JNPT, will contribute 65-70% of the new capacity, with the remainder coming

from non-major ports in Odisha, Karnataka, Andhra Pradesh, and Kerala. Utilization

is likely to stabilize around 54-58% as capacity expansion aligns with traffic growth.

Exhibit 12: Total capacity and utilization rate at Indian Ports

Total Ports Capacity (MMT)

58%

57%

56%

55%

54%

Utilisation Capacity rate

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY28E

Source: IPA, IBEF, MOFSL

Key industrial clusters drive cargo traffic at Indian ports

Port traffic is primarily driven by mineral, steel, cement, power, and discrete

manufacturing clusters. Key mineral clusters are in Odisha, Jharkhand, Chhattisgarh,

and Karnataka, while major steel capacities are located near these mineral sources

or end-user markets.

Cement and power plants are positioned based on the availability of limestone and

coal. Some coal-import-based power plants are near ports, such as Mundra,

Krishnapatnam, and Jaigarh. Discrete manufacturing clusters are mainly situated in

Northern and Western India.

February 2025

PORTS

Exhibit 13: Key mineral and manufacturing clusters in India

Source: JSWINFRA DRHP, MOFSL

Privatization of Indian ports

The Indian government has been actively promoting the privatization of ports to

enhance efficiency, attract private investment, and modernize infrastructure under

the

Maritime India Vision 2030.

By transitioning major ports to a landlord model,

the government aims to improve private sector participation in operations while

retaining ownership of land and strategic assets.

This policy shift is intended to improve cargo handling efficiency, reduce logistics

costs, and boost India's competitiveness in global trade. Privatization initiatives also

align with the larger goal of developing world-class infrastructure, fostering

economic growth, and increasing capacity to meet the growing demand for cargo

handling driven by rising exports and imports.

Exhibit 14: Privatization of ports in India

PORT

Paradip Port

Deendayal Port (Kandla)

JNPT(Mumbai)

Mormugao Port

Mumbai Port

Shyama Prasad Mookerjee Port Kolkata (Khidderpore)

Shyama Prasad Mookerjee Port Kolkata (Haldia)

Visakhapatnam Port

V. O. Chidambaram Port (formerly Tuticorin

New Mangalore Port

Total

Total no. of

projects

FY22

FY23

FY24

FY25E

Source: IBEF, Industry Reports, MOFSL

February 2025

PORTS

A total of 31 privatization projects are planned, with 13 projects completed in FY22,

10 in FY23, and the remaining eight being split across FY25 and FY26. Paradip and

Visakhapatnam ports each have four projects planned, with significant progress

observed. This reflects India's continued efforts to enhance efficiency and

investment in its port infrastructure through privatization.

Regulatory framework of the ports sector in India

The

Major Port Authorities Act, 2021

replaced the

Major Ports Trust Act, 1963,

bringing significant reforms to the governance of major ports in India. Under the

new Act, the

Port Authority Board

holds several key powers. First, the composition

and list of board members must be submitted to the central government every five

years. The Board is also considered the successor to the previous Board of Trustees

of Major Ports.

Additionally, the Act mandates the formation of an

Adjudicatory Board

within the

Port Authority to resolve disputes between ports and PPP concessionaires, taking

over the functions of the former

Tariff Authority for Major Ports (TAMP).

The Port

Authority Board is also empowered to manage port assets and funds, develop

infrastructure such as new ports and jetties, and grant exemptions from charges on

goods or vessels.

Further, the repeal of

TAMP

allows port authorities to set tariffs based on market

conditions, improving the competitive positioning of major port terminals relative to

non-major ports, which already had this flexibility. In summary, the Act modernizes

port governance, enhances dispute resolution, and boosts the attractiveness of the

port sector by granting port authorities greater autonomy and enabling competitive

tariff-setting.

Exhibit 15: The institutional framework of Indian ports

The Indian government is

promoting port

privatization under

Maritime India Vision 2030,

shifting to a landlord model

to enhance efficiency,

attract investment, and

boost global trade

competitiveness

Source: JSWINFRA DRHP, MOFSL

February 2025

PORTS

Key risks/challenges in the Indian ports sector



Key challenges for Indian

ports include policy

uncertainty, infrastructure

gaps, environmental

hurdles, and global trade

volatility, affecting

investment, connectivity,

and cargo throughput.



Policy and regulatory uncertainty:

Frequent changes in government policies

and regulations can create uncertainty for private port operators. Delay in

finalizing key policies, such as the National Ports Policy and regulatory

frameworks for tariff rationalization, hinders investment decisions.

Infrastructure gaps:

Poor last-mile connectivity to ports, including inadequate

road and rail infrastructure, hampers seamless cargo movement. Insufficient

dredging and maintenance result in shallow drafts at many ports, limiting their

ability to handle large vessels.

Environmental and social challenges:

Coastal projects face delays due to

environmental clearances and social opposition, particularly concerning land

acquisition and ecological impact. Rising sea levels and extreme weather events

pose long-term risks to port infrastructure.

Global economic volatility:

Fluctuations in global trade volumes due to

economic downturns, geopolitical tensions, or protectionist policies can impact

cargo throughput. Dependence on certain commodities (e.g., coal, crude oil)

makes ports vulnerable to changes in trade dynamics and shifting energy

policies.

Operational efficiency:

Major ports often lag in adopting modern technologies,

such as automation and digitalization, compared to global counterparts.

Bureaucratic inefficiencies and outdated labor practices in some ports reduce

competitiveness.

Concerns regarding port privatization:

While privatization has attracted

investments, disputes over revenue-sharing models and concession agreements

have created friction between the government and private operators. Concerns

about monopolization by large private players could affect fair competition.

Geopolitical risks:

Proximity to politically sensitive areas (e.g., the Indian Ocean)

exposes ports to risks from geopolitical instability. Increasing competition from

regional ports in Sri Lanka, Bangladesh, and the Middle East could adversely

affect India's share in transshipment cargo.

Market leaders, such as APSEZ and JSWINFRA, well-placed to outpace

industry growth



The all-India cargo throughput has posted a CAGR of 5% over FY14-24. APSEZ

and JSWINFRA are emerging as dominant players in the Indian port sector,

significantly outpacing the overall industry growth.

February 2025

PORTS

Exhibit 16: All-India cargo throughput has recorded a CAGR of 5% over FY14-24

All India Cargo Throughput (MMT)

1,539

1,282

973

FY14

FY19

FY24

Source: Company, MOFSL



APSEZ has exhibited a CAGR of 14% in domestic cargo volumes between FY14

and FY24, substantially surpassing India’s cargo throughput CAGR of 5% during

the same period. This growth trajectory has elevated its market share in cargo

handling from 10% in FY14 to 27% as of Dec’24. Such growth is fueled by a

combination of aggressive capacity expansions—both organic and inorganic. The

company’s acquisitions of ports on India’s west and east coasts, coupled with

greenfield and brownfield developments, have cemented its position as a

market leader. Additionally, APSEZ’s focus on integrating logistics services—

spanning container train operations (CTO), warehousing, last-mile delivery, and

inland container depots (ICDs)—positions it as a holistic transport utility. This

strategy not only captures a greater share of customers’ logistics needs but also

fosters customer loyalty by making cargo handling more streamlined and

efficient.

Exhibit 18: Market share of APSEZ

Cargo handled by Adani Ports (MMT)

Adani's share in Overall Cargo (%)

20%

24% 24%

Exhibit 17: Cargo throughput at APSEZ (MMT)

Adani Ports (MMT)

408

208

113

27%

10%

12%

14% 14%

17%

15% 15% 16%

Source: Company, MOFSL



Source: Company, MOFSL

JSWINFRA has also demonstrated exceptional growth, achieving a CAGR of 25%

in cargo volumes from FY19 to FY24, well above India’s growth rate of 5%. This

surge has allowed JSWINFRA to command a 7% market share in the Indian port

sector. The company's focus on capacity enhancement is evident from its

ambitious roadmap to increase capacity to 400MMT by FY30 from 174MMT at

present. Further, JSWINFRA’s acquisition of a 70% stake in Navkar Corporation

highlights its commitment to providing end-to-end logistics solutions, leveraging

large land resources and last-mile connectivity. This diversified approach to

logistics complements its port operations, ensuring robust growth and sustained

competitiveness.

February 2025

PORTS

Exhibit 19: Cargo throughput at JSWINFRA (MMT)

FY19

FY24

107

Exhibit 20: Market share of JSWINFRA

Cargo handled by JSWINFRA (MMT)

JSWINFRA's share in Overall Cargo (%)

FY20

FY21

FY22

FY23

107

FY24

FY19

FY24

Source: Company, MOFSL

FY16

FY17

FY18

FY19

Source: Company, MOFSL

Exhibit 21: Valuation assessment

M-cap (INR b)

Rating

CMP

EPS FY27E

P/E FY27E

Target multiple (x)

Target

Upside (%)

APSEZ

2,400

BUY

1,112

15.9

1,400

26%

JSWINFRA

500

BUY

238

9.8

24.6

330

37%

Exhibit 22: Relative performance comparison

Revenue CAGR (FY24-27E)

EBITDA CAGR (FY24-27E)

PAT CAGR (FY24-27E)

Average RoE (FY24-27E)

Average RoCE (FY24-27E)

EV/EBITDA FY27E

APSEZ

14%

15%

19%

13%

JSWINFRA

22%

21%

20%

17%

14%

February 2025

Compaines

PORTS

PG23

Adani Ports & SEZ

Largest private port operator in India

PG27

JSW Infrastructure

Scouting for organic and inorganic expansions

February 2025

Adani Ports & SEZ

BSE SENSEX

75,736

S&P CNX

22,913

February 2025

Company Update | Sector: Logistics

CMP: INR1,112

Largest private port operator in India

TP: INR1,400 (+26%)

Buy

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

ADSEZ IN

2160

2401.4 / 27.7

1621 / 994

-1/-18/-18

5813

Financials & Valuations (INR b)

Y/E MARCH

Sales

EBITDA

Adj. PAT

EBITDA Margin (%)

Adj. EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

Ratios

Net D:E

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA(x)

EV/ton (USD)

Div. Yield (%)

FCF Yield (%)

FY25E

298.2

181.0

102.9

60.7

47.7

15.5

286.8

0.6

17.9

11.8

15.4

23.3

3.9

15.3

0.7

2.7

23.3

FY26E

341.9

209.7

126.3

61.3

58.5

22.7

336.5

0.5

18.8

12.8

12.6

19.0

3.3

13.1

0.7

3.4

19.0

FY27E

396.2

242.0

151.3

61.1

70.0

19.8

396.0

0.4

19.1

13.6

10.5

15.9

2.8

11.2

0.7

4.4

15.9

Jun-23

62.9

12.4

17.0

7.7

Shareholding pattern (%)

As On

Jun-24 Mar-24

Promoter

65.9

DII

12.5

11.8

FII

15.2

15.0

Others

6.4

7.3

FII Includes depository receipts

Stock’s performance (one-year)

APSEZ is the largest port developer and operator in India by volume, with an

annual capacity of ~633MMT in India. It commenced operations with the

Mundra Port in Gujarat under a 30-year concession agreement with the

Gujarat Maritime Board (GMB). Since then, the port company has rapidly

grown to become the largest in the country in terms of cargo handling

capacity, with 15 operational ports/terminals. The ports offer handling

services for all kinds of cargo, viz., dry bulk, liquid bulk, crude, and containers.

Further, through Adani Logistics (ALL), the company is present in the logistics

business, offering container trains, inland container depots (ICDs),

warehousing, etc., which it has been expanding to become an integrated

transport utility company.



Strong volume growth:

APSEZ ended FY24 with 24% volume growth in FY24

volumes, taking the total volumes to 420 MMT (YTDFY25 volumes

registered growth of 7% YoY at 372MMT). About 27% of the all-India cargo

volume was routed through APSEZ ports in FY24 and 9MFY25. For FY25, the

company is targeting cargo volumes of 460-470 MMT.



Market share gains driven by operational efficiencies:

APSEZ achieved 3x

higher growth than the industry, growing its market share to ~27% as of

Dec’24 from 10% in FY13. This growth was driven by the incorporation of

new cargo classes at Mundra and Dhamra ports and a pickup in coal &

coastal coal cargo at Gangavaram and Dhamra (aided by robust economic

growth). Additionally, the advantages of an integrated port-cum-logistics

service have significantly helped gain market share.



Transforming into an integrated logistics solutions company:

ALL has

expanded its services to cover container train operations, container

handling in logistic parks, and warehouses offering storage and trucking

solutions. With 12 multi-modal logistics parks, 132 trains, 3.1m sq. ft. of

warehousing space, and 1.2mmt of grain silos, ALL aims to establish a

nationwide presence by further developing logistic parks and warehouses.



India’s largest third-party marine service provider with the most extensive

capital dredging capacity:

APSEZ is the largest marine service provider in

the country and has recently acquired an 80% stake in Astro for USD185m.

Founded in 2009, Astro is a leading global offshore support vessel (OSV)

operator with a fleet of 26 vessels, providing services across the Middle

East, India, Far East Asia, and Africa.



Volume growth trajectory to continue; reiterate BUY:

APSEZ continues to

gain market share while generating strong cash flows and maintaining its

leverage position, with a net debt-to-EBITDA ratio of 2x as of Sep’24. We

expect APSEZ to register 10% volume growth and a CAGR of 14%/15%/19%

in revenue/EBITDA/PAT over FY24-27.

With consistent outperformance in

cargo volumes, we reiterate our BUY rating with a TP of INR1,400 (based

on 15x Sep’26 EV/EBITDA).

February

2025

PORTS

Exhibit 23: APSEZ – volumes (MMT)

600

450

300

150

249

312

Mundra

Kattupalli

Others

Hazira

Krishnapatnam

420

Dhamra

Gangavaram

556

506

457

Exhibit 24: Revenue growth to remain strong

Revenue (INR b)

342

396

339

125

171

209

267

298

Source: Company, MOFSL

Exhibit 25: Margin to stabilize at ~60%

EBITDA (INR b)

EBITDA margins (%)

Exhibit 26: Strong operating performance to drive PAT

Adj. PAT (INR b)

126

151

64%

61%

62%

59%

61%

103

104

128

159

181

210

242

Source: Company, MOFSL

Exhibit 27: Ports revenue to report a 14% CAGR

Ports Revenue (INR b)

EBITDA (INR b)

360

230

Exhibit 28: Logistics revenue to report a 12% CAGR

Logistics Revenue (INR b)

29.5

104

116

150

187

121

242

152

270

173

311

200

17.4

9.6

2.3

9.6

2.3

12.1

3.2

4.9

20.8

22.8

25.0

5.4

5.9

6.7

8.1

Source: Company, MOFSL

February 2025

PORTS

Financials and valuation

Consolidated Income Statement

Y/E March (INR b)

Net Sales

Change in Net Sales (%)

Total Expenses

EBITDA

Margin (%)

Depn. & Amortization

EBIT

Net Interest

Other income

PBT

EO expense

PBT after EO

Tax

Rate (%)

PAT before JV, MI

Share of loss from JV, MI

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

FY21

125

5.7

63.6

-6

19.7

-1

-9.6

36.0

FY22

171

36.4

104

60.7

13.4

30.3

34.4

FY23

209

21.8

128

61.5

1.8

29.8

36.7

FY24

267

28.1

108

159

59.4

120

107

103

19.4

-2

16.5

33.4

FY25E

298

11.6

117

181

60.7

138

122

-4

126

16.0

106

-0.1

106

103

15.5

34.5

FY26E

FY27E

342

396

14.7

15.9

132

154

210

242

61.3

61.1

163

190

150

180

150

180

16.0

126

151

-0.1

0.0

126

151

126

151

22.7

19.8

36.9

38.2

Source: MOFSL, Company

Consolidated Balance Sheet

Y/E March (INR b)

Share Capital

Reserves

Net Worth

Minority Interest

Total Loans

Deferred Tax Liability

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Capital WIP

Investments

Curr. Assets

Inventories

Account Receivables

Cash and Bank Balance

-Cash and cash equivalents

-Bank balance

Loans & advances

Other current assets

Curr. Liability & Prov.

Account Payables

Provisions

Other current liabilities

Net Curr. Assets

Appl. of Funds

FY21

302

306

344

668

552

111

441

244

143

168

668

FY22

416

420

455

895

700

142

558

353

107

201

265

895

FY23

452

456

498

977

782

148

634

101

324

225

150

114

175

977

FY24

525

529

463

1,031

848

179

669

109

335

215

139

105

196

1,031

FY25E

615

620

458

1,117

938

222

715

109

353

216

138

105

216

1,117

FY26E

FY27E

723

851

727

856

448

438

1,215

1,335

1,033

1,128

269

321

763

807

109

106

136

377

427

129

216

217

141

144

105

236

282

1,215

1,335

Source: MOFSL, Company

February 2025

PORTS

Financials and valuation

Ratios

Basic (INR)

EPS

EPS Growth

Cash EPS

BV/Share

Payout (%)

Dividend yield (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/EBITDA

Dividend Yield (%)

Return Ratios (%)

RoE

RoCE (post-tax)

RoIC (post-tax)

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Debtor (Days)

Creditors (Days)

Inventory (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/EBITDA

Net Debt/Equity

FY21

22.3

-9.6

32.6

150.7

22.5

0.5

49.9

34.0

7.4

33.5

0.5

16.1

10.3

9.5

0.3

0.2

3.2

3.7

1.0

FY22

27.9

25.4

42.6

198.8

17.9

0.5

39.8

26.1

5.6

25.6

0.5

16.2

10.4

9.9

0.3

0.2

4.0

3.7

3.3

0.8

FY23

35.4

26.9

51.3

211.0

14.1

0.5

31.4

21.7

5.3

21.5

0.5

17.5

10.9

12.5

0.3

0.2

2.2

4.2

3.6

1.0

FY24

41.3

16.5

59.3

245.1

14.5

0.6

26.9

18.7

4.5

17.2

0.5

18.1

11.1

12.4

0.3

2.4

4.8

2.4

0.7

FY25E

47.7

15.5

67.8

286.8

15.4

0.7

23.3

16.4

3.9

15.3

0.7

17.9

11.8

14.1

0.4

0.3

2.6

5.3

2.1

0.6

FY26E

58.5

22.7

80.2

336.5

12.6

0.7

19.0

13.9

3.3

13.1

0.7

18.8

12.8

15.6

0.4

0.3

2.7

6.5

1.7

0.5

FY27E

70.0

19.8

93.9

396.0

10.5

0.7

15.9

11.8

2.8

11.2

0.7

19.1

13.6

17.2

0.5

0.3

3.0

7.8

1.3

0.4

Cash Flow Statement (INR b)

OP/(Loss) before Tax

Depreciation

Direct Taxes Paid

(Inc)/Dec in WC

Other Items

CF from Operations

(Inc)/Dec in FA

Free Cash Flow

Acquisitions/Divestment

Change in Investments

Others

CF from Investments

Share issue

Inc/(Dec) in Debt

Interest

Dividend

Others

Cash from financing activity

Net change in cash & equi.

Opening cash balance

change in control of subs.

Closing cash balance

FY21

-9

-4

-19

-150

-141

-20

-31

FY22

-10

104

-36

-7

-28

-53

-26

-10

-54

-6

-2

FY23

-8

-9

119

-89

-144

-196

-24

-11

-6

-27

-104

FY24

101

-13

150

-74

-31

-5

-69

-41

-28

-11

-78

FY25E

127

-20

-11

154

-90

-20

-97

-5

-29

-16

-49

FY26E

FY27E

151

181

-24

-29

-10

-13

177

202

-95

107

-30

-110

-109

-10

-27

-19

-23

-56

-59

Source: MOFSL, Company

February 2025

JSW Infrastructure

BSE SENSEX

75,736

S&P CNX

22,913

February 2025

Company Update | Sector: Logistics

Scouting for organic and inorganic expansions

JSWINFRA, incorporated in 2006, is a part of the JSW Group and is engaged in the

business of developing infrastructure and operations for ports across India. As of

Dec’24, JSWINFRA has a total operational capacity of around 174 MMTPA. It has

also entered into an agreement with the Port of Fujairah for the operation and

maintenance of the bulk handling system for cargo at two berths in the Fujairah

Port. In Oct’23, JSWINFRA completed its IPO of INR28b.



CMP: INR238

TP: INR330 (+37%)

Buy

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

JSWINFRA IN

2100

500.4 / 5.8

361 / 211

-18/-17/-3

1050

Financials & Valuations (INR b)

Y/E MARCH

Sales

EBITDA

Adj. PAT

EBITDA Margin (%)

Adj. EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

Ratios

Net D:E

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA(x)

EV/ton (USD)

Div. Yield (%)

FCF Yield (%)

FY25E FY26E FY27E

45.3

55.0

67.8

23.0

28.2

35.0

14.0

16.2

20.5

50.7

51.4

51.5

6.7

7.7

9.8

15.3

15.5

26.5

43.2

49.0

56.3

-0.0

16.4

12.9

0.0

35.9

5.6

21.9

0.0

51.0

35.9

0.0

16.7

13.3

0.0

31.1

4.9

17.9

0.0

0.1

31.1

-0.0

18.5

15.0

0.0



24.6

4.3

14.4

0.0

64.9

24.6

Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Dec-24

Sep-24

Dec-23

85.6

2.7

2.5

4.1

5.4

5.6

5.1

6.3

5.2

FII Includes depository receipts



Stock’s performance (one-year)

JSW Infrast

Nifty - Rebased



390

340

290

240

190

Geographically diversified port locations:

JSWINFRA has two minor

ports (Jaigarh and Dharamtar) on the western coast, while it has seven

operational terminals on major ports. Among seven port terminals, four

are located on the eastern coast and three on the western coast, leading

to a geographically diverse presence for JSWINFRA. The ports are located

in the vicinity of JSW Group companies.

Volume growth to remain robust:

Cargo volumes grew 15% YoY in FY24 to

106.5MMT from 93MMT in FY23 (three-year CAGR of 33% over FY21-24).

With capacity ramp-up at existing ports, along with a higher share of

volumes from third-party customers, we expect the growth momentum to

continue.

Scouting for organic and inorganic expansions:

JSWINFRA has been

actively scouting for growth opportunities (organic/inorganic) as the

management aims to maintain a ~15% CAGR in volume over the long

term. In FY24, JSWINFRA signed a concession agreement with the

Karnataka Maritime Board to develop a 30 MTPA greenfield port in Keni,

Karnataka. Additionally, it emerged as the winning bidder for a 7MTPA dry

bulk terminal in Tuticorin through a PPP model. Furthermore, JSWINFRA

signed a concession agreement with JNPA for two liquid berths with a

capacity of 4.5MTPA.

To enhance capacity to 400MMT by 2030 through capex:

In line with its

long-term growth outlook, the management has guided a capex of

INR300b over FY24-30E, which will increase overall capacity by 85MMT in

the next three years, and to 400MMT by 2030 (current capacity is

174MMT).

On track to deliver robust performance; reiterate BUY:

Considering

stable growth levers at its existing ports and terminals, a higher share of

third-party customers, sticky cargo volume from JSW Group companies,

and an expanding portfolio, we expect JSWINFRA to strengthen its

market dominance, leading to a 14% volume CAGR over FY24-27. This

should drive a 22% CAGR in revenue and a 21% CAGR in EBITDA.

reiterate our BUY rating with a revised TP of INR330 (premised on 22x

Sep’26 EV/EBITDA).

February

2025

PORTS

Exhibit 29: Expect JSWINFRA to report 14% volume CAGR over FY24-27 (MMT)

Jaigarh Port

New Mangalore Coal

Ennore Bulk

Dharamtar Port

Paradip Iron Ore

Others

320

240

160

South West Port, Goa

Paradip Coal

Total

New Mangalore Container

Ennore Coal

107

118

135

156

Source: Company, MOFSL

Exhibit 30: Revenue growth to remain strong

Revenue (INR b)

Exhibit 31: Margin to improve with higher volumes

EBITDA (INR b)

EBITDA margins (%)

54%

51%

49%

51%

52%

51%

52%

Source: Company, MOFSL

Exhibit 32: Strong operating performance to drive PAT

Adj. PAT (INR b)

Exhibit 33: Return ratios to remain stable

RoE (%)

RoCE (%)

9 8

Source: Company, MOFSL

February 2025

PORTS

Financials and valuation

Consolidated Income Statement

Y/E March (INR m)

Net Sales

Change in Net Sales (%)

Total Expenses

EBITDA

Margin (%)

Depn. & Amortization

EBIT

Net Interest

Other income

PBT

EO expense

PBT after EO

Tax

Rate (%)

PAT before JV, MI

Share of loss from JV, MI

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

FY21

16,036

40.3

7,871

8,164

50.9

2,707

5,458

2,522

747

3,683

-244

3,926

1,080

27.5

2,846

2,914

2,731

9.3

17.0

FY22

22,731

41.7

11,636

11,094

48.8

3,695

7,399

3,480

1,057

4,976

716

4,260

955

22.4

3,304

-25

3,279

3,817

39.7

16.8

FY23

31,947

40.5

15,746

16,202

50.7

3,912

12,290

2,819

1,781

11,252

3,142

8,110

615

7.6

7,495

-97

7,398

9,755

155.6

30.5

FY24

37,629

17.8

17,983

19,646

52.2

4,365

15,281

2,892

2,694

15,083

433

14,650

3,043

20.8

11,607

-48

11,559

11,884

21.8

31.6

FY25E

45,297

20.4

22,309

22,988

50.7

5,452

17,536

3,248

3,314

17,602

118

17,484

3,497

20.0

13,987

-48

13,939

14,022

18.0

31.0

FY26E

54,987

21.4

26,743

28,244

51.4

7,797

20,447

2,961

3,347

20,832

4,583

22.0

16,249

-48

16,201

15.5

29.5

FY27E

67,848

23.4

32,889

34,960

51.5

9,024

25,936

2,974

3,380

26,342

5,795

22.0

20,547

-48

20,499

26.5

30.2

Source: MOFSL, Company

FY26E

4,103

98,766

1,02,869

2,142

41,807

-1,916

1,44,902

1,04,231

26,352

77,879

1,089

2,445

78,279

1,482

6,026

39,169

5,500

33,668

31,521

14,789

7,532

132

7,125

63,489

1,44,902

FY27E

4,103

1,14,140

1,18,243

2,190

40,807

-1,916

1,59,324

1,24,231

35,376

88,855

1,089

2,445

83,487

1,643

7,435

42,790

9,122

33,668

31,532

16,551

9,294

132

7,125

66,936

1,59,324

Consolidated Balance Sheet

Y/E March (INR m)

Share Capital

Reserves

Net Worth

Minority Interest

Total Loans

Deferred Tax Liability

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Capital WIP

Investments

Curr. Assets

Inventories

Account Receivables

Cash and Bank Balance

-Cash and cash equivalents

-Bank balance

Loans & advances

Other current assets

Curr. Liability & Prov.

Account Payables

Provisions

Other current liabilities

Net Curr. Assets

Appl. of Funds

FY21

599

28,312

28,912

1,973

34,807

-764

64,927

45,158

6,995

38,163

11,239

2,955

28,112

991

4,115

3,145

1,514

1,631

2,889

16,972

15,542

2,615

12,845

12,571

64,927

FY22

599

32,122

32,721

1,998

44,087

-969

77,837

47,405

8,693

38,712

701

2,830

48,563

854

6,013

10,382

5,288

5,094

2,478

28,834

12,969

2,748

10,132

35,594

77,837

FY23

3,596

36,350

39,946

942

42,437

-2,121

81,205

48,886

10,435

38,451

450

3,070

49,029

1,022

4,024

16,316

6,187

10,130

585

27,082

9,796

3,016

6,701

39,234

81,205

FY24

4,103

76,161

80,264

2,047

43,807

-1,916

1,24,201

64,231

13,103

51,128

1,089

2,445

80,359

1,117

6,768

40,902

7,234

33,668

31,497

10,819

3,562

132

7,125

69,540

1,24,201

FY25E

4,103

86,615

90,718

2,094

42,807

-1,916

1,33,704

79,231

18,554

60,677

1,089

2,445

82,335

1,345

5,585

43,819

10,150

33,668

31,509

12,841

5,585

132

7,125

69,493

1,33,703

Source: MOFSL, Company

February 2025

PORTS

Financials and valuation

Ratios

Basic (INR)

EPS

EPS Growth

Cash EPS

BV/Share

Payout (%)

Dividend yield (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/EBITDA

Dividend Yield (%)

Return Ratios (%)

RoE

RoCE (post-tax)

RoIC (post-tax)

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Debtor (Days)

Creditors (Days)

Inventory (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/EBITDA

Net Debt/Equity

FY21

45.6

9.3

90.7

482.4

0.0

5.3

2.6

0.5

5.3

0.0

10.0

7.7

9.0

0.4

0.2

1.8

2.5

3.9

1.1

FY22

63.7

39.7

125.3

546.0

0.0

3.8

1.9

0.4

4.1

0.0

12.4

9.1

10.3

0.5

0.3

3.7

2.4

3.0

1.0

FY23

5.4

-91.5

7.6

22.2

0.0

44.2

31.6

10.8

28.1

0.0

26.8

15.5

18.1

0.7

0.4

5.0

1.6

0.7

FY24

5.8

6.8

7.9

39.1

0.0

41.4

30.3

6.1

25.1

0.0

19.8

13.8

17.2

0.7

0.3

7.4

6.2

0.1

0.0

FY25E

6.7

15.3

9.3

43.2

0.0

35.9

25.9

5.6

21.9

0.0

16.4

12.9

16.9

0.7

0.3

6.4

0.0

FY26E

7.7

15.5

11.4

49.0

0.0

31.1

21.0

4.9

17.9

0.0

16.7

13.3

16.9

0.7

0.4

5.3

8.0

0.1

0.0

FY27E

9.8

26.5

14.1

56.3

0.0

24.6

17.1

4.3

14.4

0.0

18.5

15.0

18.8

0.8

0.4

5.0

9.9

-0.1

0.0

Cash Flow Statement (INR m)

OP/(Loss) before Tax

Depreciation

Direct Taxes Paid

(Inc)/Dec in WC

Other Items

CF from Operations

(Inc)/Dec in FA

Free Cash Flow

Acquisitions/Divestment

Change in Investments

Others

CF from Investments

Share issue

Inc/(Dec) in Debt

Interest

Dividend

Others

Cash from financing activity

Net change in cash & equi.

Opening cash balance

change in control of subs.

Closing cash balance

FY21

3,926

2,707

-252

1,630

2,098

10,108

-15,925

-5,817

820

-1,262

-16,368

8,676

-2,242

-231

6,202

-57

1,571

1,514

FY22

4,260

3,695

-1,222

1,077

3,953

11,762

-5,068

6,694

125

-3,070

-8,013

3,908

-3,621

-262

3,775

1,514

5,288

FY23

8,110

3,912

1,807

1,952

2,192

17,972

-2,690

15,282

-168

-3,350

-6,208

-5,054

2,727

-8,539

-10,866

899

5,288

6,187

FY24

14,650

4,365

-248

-1,141

406

18,032

-2,489

15,543

1,182

-40,739

-42,047

28,000

2,479

-5,454

25,039

1,024

6,210

7,234

FY25E

17,484

5,452

-3,497

2,963

-66

22,336

-15,000

7,336

3,314

-11,686

-1,000

-3,248

-3,485

-7,733

2,917

7,234

10,150

FY26E

FY27E

20,832

26,342

7,797

9,024

-4,583

-5,795

1,354

176

-385

-406

25,015

29,340

-25,000

-20,000

9,340

3,347

3,380

-21,653

-16,620

-1,000

-2,961

-2,974

-4,050

-5,125

-8,012

-9,099

-4,650

3,622

10,150

5,500

9,122

Source: MOFSL, Company

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

February 2025

REPORT GALLERY

RECENT INITIATING COVERAGE REPORTS

PORTS

February 2025

PORTS

NOTES

February 2025

PORTS

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

< - 10 % to 15%

Rating may undergo a change

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take

appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in

the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on

www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National

Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for

its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of

Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of

associate entities of Motilal Oswal Financial Services Limited are available on the website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or

derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial

instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and

other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are

completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL

may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage

service

transactions.

Details

pending

Enquiry

Proceedings

Motilal

Oswal

Financial

Services

Limited

are

available

the

website

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental research and Technical

Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can

have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary

to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures

Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg.

No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to

“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with

professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian

Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the

United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and

under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and

services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act

and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any

investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption

from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission

("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities

International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,

MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research

analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt

financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b)

are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional

investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .

In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL

write to grievances@motilaloswal.com.

Nainesh Rajani

Email: nainesh.rajani@motilaloswal.com

Contact: (+65) 8328 0276

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

********************************************************************************************************************************

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public

appearance.

- received compensation/other benefits from the subject company in the past 12 months

- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific

recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an

inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act

as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

February 2025

PORTS

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts

which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,

or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Terms & Conditions:

This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any

way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures

and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources

believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All

such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or

subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not

treat recipients as customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to

any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an

offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation

that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make

their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment

by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in

this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not

be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not

suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures

of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject

to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its

associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.

They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as

a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already

available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed

therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or

in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,

where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities

described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to

observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost

revenue or lost profits that may arise from or in connection with the use of the information.

The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees

from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any

of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person accessing this information due to any errors and delays.

This report is meant for the clients of Motilal Oswal only.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.

Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,

Email Id: na@motilaloswal.com, Contact No.:022-40548085.

Grievance Redressal Cell:

Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:

ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.

Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to

grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.

Contact Person

Ms. Hemangi Date

Ms. Kumud Upadhyay

Mr. Ajay Menon

Contact No.

022 40548000 / 022 67490600

022 40548082

022 40548083

Email ID

query@motilaloswal.com

servicehead@motilaloswal.com

am@motilaloswal.com

February 2025