HSBC has upgraded Gujarat Pipavav to Hold with a target price of ₹150 per share, following a weaker-than-expected Q3 performance. The company’s EBITDA declined by 6% YoY, largely due to weaker container and bulk cargo volumes.
Despite the near-term weakness, HSBC expects liquid cargo volumes to drive overall volume growth for Gujarat Pipavav. However, the brokerage cautioned that sustainable earnings growth will depend on a recovery in container cargo volumes.
Given the muted Q3 performance, HSBC has cut its FY25-27 profit estimates by 4-5%, citing concerns over sluggish global trade trends and uncertain demand recovery. The brokerage remains cautious on near-term growth prospects but acknowledges that Gujarat Pipavav’s strategic location and capacity expansions could support long-term growth.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making any investment decisions.
