Karvy Stock Broking expects container traffic handled at the major ports strengthened further during 2QFY15 as total volumes (in TEUs) rose 9% YoY - the highest in last 15 quarters. Major ports' container volume had declined 1%/ 3% YoY during FY13/FY14 driven by weak economic activity in India and market share grab by the container ports of Mundra and Pipavav. On weight basis, total container handling at major ports rose 5.2% YoY.

''The JNPT port led this strong growth and rose 11% YoY (volume basis) in 2QFY15. On weight basis, it registered 5.2% YoY uptick. Chennai port container volumes rose 7% YoY during 2QFY15. On weight basis, Chennai container handling rose 6.3% YoY,'' said Karvy Stock Broking.

''With increasing traction in port & CFS volumes, and rail Rail handling volumes the profitability of CFS and Rail operators should increase. These should also re-rate the valuation multiples for these companies. We have increased Gateway Distriparks' PAT estimates for FY15E/FY16E/FY17E by 3%/ 6%/6% respectively to factor in increased throughput across all the three business segments. Subsequently, we have upgraded the stock to 'Buy'. We maintain our estimates for Concor and also maintain our 'Hold' recommendation on the stock. We have increased its TP by 5% to Rs 1,470 to factor in improving industry dynamics leading to valuation multiple re-rating,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.