Vadhavan Port Project: Key Stocks to Keep an Eye On

As part of the project, 1,448 hectares of seabed will be reclaimed, and 10.14 km of offshore breakwater and container/cargo storage sites will be built.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Rs 76,220 crore greenfield Vadhavan Port.

One of the top 10 ports in the world is expected to be created by the Vadhavan Port Project (VPPL), an SPV established by the Maharashtra Maritime Board (MMB) and the Jawaharlal Nehru Port Authority (JNPA).

Scope of Work of Vadhavan Port

The project will cost a total of Rs 76,220 crore, including the cost of the land purchase. It will involve public-private partnerships (PPP) for the development of terminals, core infrastructure, and additional commercial facilities.

The port will have nine container terminals, each measuring one thousand metres, along with four multipurpose berths that include a coast guard berth, a Ro-Ro berth, four liquid cargo berths, and a coastline berth. A total of 1,448 hectares of seabed will be reclaimed as part of the project, along with 10.14 km of offshore breakwater and container/cargo storage facilities.

Approximately 23.2 million TEUs (twenty-foot equivalents) of container handling capacity will be added to the project's 298 million metric tons (MMT) annual capacity.

The top five equities to keep an eye on are listed below.

Ports & SEZ Adani (APSEZ)
The largest private port operator in India, Adani Ports and Special Economic Zone (APSEZ) offers end-to-end logistical services. Presently, thirteen ports and terminals in critical locations account for twenty-four percent of the nation's port capacity. Additionally, the company offers reclamation and dredging services, mostly for port and harbour construction.

Market value: 3,26,310.59 crore CMP: 1510

Dredging Corporation of India
Major ports in the nation receive dredging services from Dredging Corporation of India (DCI). As of March 31, 2024, the company held a confirmed and anticipated order book of Rs 1088.70 crore, to be executed in the first nine months of FY2025, giving it a nearly 80%
market share. The company anticipates receiving more orders of Rs 2750 crore, which will significantly increase its revenue visibility.

CMP: 1295
Value of the market: 3,633.70 crore

Engineers India

Oil and gas processing, refineries, petroleum, and other associated services are provided by EIL, a Navratna EPC PSU. In addition, the business offers turnkey and consulting services for coastal engineering, including material handling, geotechnical engineering, and port and shipyard plan preparation. The company recorded sales of Rs 3,281 crore and net profit of Rs 445 crore for the year ending March 31, 2024. The total amount in EIL's order book as of December 31, 2023, was Rs 7,990.6 crore.

Market cap: 15,043.06 crore; CMP: 267.75

JSW Infrastructure

JSW Infrastructure is India's second-biggest private port operator, with a substantial 170 MTPA cargo handling capacity. Its presence is recognized globally by a cutting-edge liquid tank storage facility in Fujairah, United Arab Emirates, with a 465,000 cubic metre capacity. To further reinforce its global footprint, JSW Infrastructure now oversees operations at two dry bulk terminals in the United Arab Emirates, Fujairah and Dibba. With an eye on the future, JSW Infrastructure is well-positioned to expand, with the goal of increasing its cargo handling capacity to 300 MTPA by 2030 or before.

Market capitalization: Rs 74,676.06 crore; CMP: 355.60

Rail Vikas Nigam

Established as a critical component of Rail Vikas Nigam's (RVNL) railway project execution arm, the Miniratna company has grown to include 24 sites and 30 functional project implementation units (PIUs).

In FY 2024, the firm reported a consolidated profit after tax of Rs 1,574.47 crore and revenue of Rs 21,889 crore, which represented increases of 17.34% and 7.52%, respectively, over FY 2023. With an order book of Rs 85,000 crore, RVNL engaged in 142 bids totaling about Rs 65,000 crore in FY 2024. The company intends to participate in over 150 bids valued at more than Rs 75,000 crore in FY 2025.

Market cap: 87,633.39 crore; CMP: 420.3