1. At a Glance
India’s first private port, Gujarat Pipavav Port Ltd (GPPL), sits at a sweet spot on the southwest coast of Gujarat, connecting India to US, EU, Africa, and Asia shipping lanes. FY25 revenue stayed flat at ₹988 Cr, but PAT rose to ₹399 Cr on jaw-dropping 58% OPM. The company has been debt-averse to the point of boredom and runs a 100% dividend payout policy — effectively functioning as a high-yield savings account with cranes.
2. Introduction
GPPL isn’t chasing flashy IPO stories or billion-dollar expansion pipelines — it’s a low-drama, high-dividend port that quietly shifts containers, bulk, liquid, and RoRo cargo without setting investor WhatsApp groups on fire. Operated by APM Terminals (Maersk Group), it’s got a concession till 2028 with Gujarat Maritime Board.
While Adani Ports plays the role of Bollywood’s overachieving lead actor with multiple projects and acquisitions, GPPL is the veteran character actor — always delivering solid returns, fewer controversies, and no balance sheet stunts.
3. Business Model (WTF Do They Even Do?)
- Core: Operates a multipurpose port handling container, dry bulk, liquid bulk, and roll-on/roll-off cargo.
- Revenue: Berthing, handling, storage, marine services, and cargo handling charges.
- Clients: Shipping lines, logistics companies, importers/exporters across commodities.
- Competitive Edge: Deep-water berth, strategic location, and
- Maersk’s global network.
If it floats in or out of India and isn’t an oil tanker docked at Kandla, GPPL probably has a tariff for it.
4. Financials Overview
Fresh P/E = ₹157 ÷ ₹8.26 EPS ≈ 19.0×.
FY25 & Recent Quarters:
- Revenue (FY25): ₹988 Cr (flat YoY)
- Operating Profit: ₹578 Cr → OPM 58%
- PAT: ₹399 Cr
- Q4 FY25: ₹252 Cr revenue, ₹109 Cr PAT, OPM 62%
Commentary: Margins make FMCG jealous, but revenue growth is slower than government paperwork.
5. Valuation
Method 1 – P/E:
Sector median P/E ~20–25×.
FV = ₹8.26 EPS × 20–25× = ₹165 – ₹207.
Method 2 – EV/EBITDA:
EV = ₹7,613 Cr mcap + ₹63 Cr debt – ₹(cash est. ~₹450 Cr) ≈ ₹7,226 Cr.
TTM EBITDA ≈ ₹578 Cr → EV/EBITDA ≈ 12.5×.
Sector ~13–15× → FV = ₹7,500–₹8,670 Cr →
