Synopsis:
Gujarat Pipavav Port jumped sharply today after it announced that Oil and Natural Gas Corporation (ONGC) gave it a 5-year service contract starting from 1st Oct 2025 for port and storage facilities at Pipavav Port to support offshore supply base operations.
The shares of India’s first private sector port are in focus after securing a key contract from Oil and Natural Gas Corporation (ONGC) for providing port services. In this article, we will dive more into the details.
With a market capitalization of Rs 7,455 crore, the shares of Gujarat Pipavav Port Ltd made a day’s high of Rs 157.80 per share, up 3 percent from its previous day’s closing price of Rs 153.25 per share. Over the past five years, the stock has delivered a poor return of 84 percent, underperforming NIFTY 50’s return of 127 percent.
About the Contract
Gujarat Pipavav Port Limited (GPPL) has been informed by ONGC about the acceptance of a contract which provides for the use of the port and storage facilities at Pipavav Port. The contract is scheduled to commence on the 1st of October 2025 and will last for five years.
A formal contract between GPPL and ONGC will be signed as a result of this notice. GPPL will deliver the support required from the sea, along with storage services at the port facilities, as ONGC installs its offshore supply base at Pipavav Port under this pact.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 250 crore, up by 2 percent from Rs 246 crore in the same quarter last year. However, on a sequential basis, revenue declined by 0.80 percent from Rs 252 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit decline of 5 percent to Rs 104 crore in Q1 FY26 as compared to Rs 110 crore in Q1 FY25. However, on a QoQ basis, it recorded a decline of 7 percent from Rs 112 crore.
The company has delivered an ROE and ROCE of 17.08 percent and 23.30 percent respectively, and is currently trading at a low P/E of 19.11x as compared to its industry average of 28.40x.
Gujarat Pipavav Port Limited is engaged in the construction, operation, and maintenance of the port at Pipavav in Gujarat, India. It was incorporated in 1992 and is based in Mumbai, India.
The company provides port services, such as marine services, berth hire, wharfage, container handling, yard operations, stevedorage, and other activities. It is India’s first private sector port.
Its port handles bulk and break-bulk cargo comprising coal, cement, clinker, fertilizers, steel, iron ore, agri-products, salt, and soda ash; and liquid cargo, including LPG, POL, chemicals, vegetable oils, bitumen, etc., as well as offers roll-on roll-off, towage, maritime personnel, storage, and towage services.
Written by Satyajeet Mukherjee
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