Shares of Gujarat Pipavav Port surged on Credit Suisse upgrade. The stock jumped as much as 4.5 per cent to Rs 108.5, its biggest intraday percentage gain in nearly 4 weeks.
Credit Suisse has upgraded the stock to “outperform” from “neutral”, citing 40 per cent correction in its share price from Q2 FY17-end levels, buoyant container sector growth, recent line addition and attractive valuations.
The brokerage says that the stock has a strong operating leverage as incremental EBITDA contribution of volumes is high and there can be a margin upside as well with recovery in volumes.
It says concession extension is likely in its view. Even otherwise, it doesn't see a downside from the current level of stock price. Credit Suisse has cut the target price to Rs 135 from Rs 145.
The stock had fallen about 24 per cent this year as of last close.