𝗟𝗲𝗮𝗿𝗻 𝗮𝗯𝗼𝘂𝘁 𝗖𝗼𝗰𝗵𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗶𝗿𝗽𝗼𝗿𝘁 𝗨𝗻𝗹𝗶𝘀𝘁𝗲𝗱 𝗦𝗵𝗮𝗿𝗲 | 𝗖𝗜𝗔𝗟 𝗦𝗵𝗮𝗿𝗲 𝗣𝗿𝗶𝗰𝗲 | 𝗖𝗜𝗔𝗟 𝗜𝗣𝗢 | 𝗖𝗜𝗔𝗟 𝗣𝗿𝗲 𝗜𝗣𝗢

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗖𝗼𝗰𝗵𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗶𝗿𝗽𝗼𝗿𝘁?

The first airport in India constructed by Public-Private Partnership (PPP) is Cochin International Airport, which is owned and run by Cochin International Airport Limited (CIAL). It is astonishingly the first entirely solar-powered airport in the world. Situated 28 kilometers northeast of Kochi's city, it is India's third busiest airport for foreign travelers and its seventh largest overall. By 2022, Cochin Airport will have handled 61.8% of all air passenger movements in Kerala. Awarded the coveted "Champions of the Earth" title by the United Nations, CIAL's innovative work demonstrated to the world that major power users, such as airports, can transition to sustainable utility models for their energy requirements. Currently, CIAL's green energy projects have an installed capacity of 50 MWp, which generates 200,000 units of power per day. The airport has three terminals, one of which is the exclusive Business Jet Terminal, which is India's first charter gateway. With more than 24 years of continuous operation, Cochin International Airport has connected 31 countries with ease, working with 24 airlines to serve over 10 million passengers a year at its top-notch facilities. The company has a strong base despite not being publicly listed, with 19,000 investors from 28 countries, mostly expatriate Keralites. The State Government, which continues to be the largest investor with a stake of roughly 34%, has undertaken a huge project that has been made possible in large part by this varied investor base. Interestingly, from 2003 to 2004, the corporation has paid dividends continuously, with a total payout of 317%. The airport has three terminals that can handle 8,000 passengers at peak hours between them.CIAL's reputation for operating efficiency and strict adherence to international standards has already been well-earned. With 5 to 15 million passengers, Airports Council International (ACI) has named CIAL the "Best Airport" in the Asia-Pacific area for the last four years.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗖𝗜𝗔𝗟 𝗦𝗵𝗮𝗿𝗲 𝗣𝗿𝗶𝗰𝗲?

The CIAL Share Price is currently ₹ 290/share (as of 16th April 2024). The minimum lot is 700 shares. The prices change over time, to know about the current price of CIAL please connect with Planify at +91 70655 60002.

𝗖𝗼𝗰𝗵𝗶𝗻 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗶𝗿𝗽𝗼𝗿𝘁 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

​Public-Private Partner​: The nation's first greenfield airport, constructed through a public-private collaboration, is Cochin International Airport Limited (CIAL). Additionally, it is the world's first airport to run entirely on solar power.

Strength: According to foreign traffic, CIAL is the third busiest airport in India as of FY23. The Cochin International Airport handled 61.8% of Kerala's total air passenger traffic as of FY22. Based on the circle rate, the land owned by CIAL in Nedumbassery, Kochi, Kerala, India, has a fair worth of ₹ 1993 Cr.

Investor Background: Despite not being listed, the company has 19,000 investors in 28 countries, most of them are Keralites living abroad. The major investor in this ambitious airport project is the Kerala State Government, which owns around 34% of the project.

Revenue Growth: Passenger and airline travel resumed as normal when the lockdown was lifted and the economy recovered. This contributed to an increase in passenger traffic, which in turn helped to boost FY23 revenue growth from ₹ 502.30 Cr in FY22 to ₹ 939.64 Cr in FY23, an 87% increase. The company's revenue increased by 6.5% CAGR during the last five years, from ₹ 686.11 Cr in FY18 to ₹ 939.64 Cr in FY23.

Net Profit Margin: From ₹ 35 Cr in FY22 to ₹ 292.7 Cr in FY23, the company's net profit margin increased by 736.7% to 31% in FY23. The company's net profit margin has grown steadily during the last five years, averaging 11.2% CAGR.

Return Ratios: The company's ROE is a very healthy 16.9% in FY23 and has grown at a 5.2% CAGR over the previous five years. Similarly, the company's ROCE is a very healthy 13.9% in FY23 and has grown at a 6.6% CAGR over the previous five years.

Investment Thesis: The CIAL board approves a comprehensive strategy for infrastructure development that anticipates the conclusion of several significant projects. Launching in September, a new import terminal aims to increase cargo throughput by 150%. In addition, four projects had their foundations laid: the ₹500 crore extension of Terminal-3; a new cargo terminal; improvements to the city's infrastructure; a transit lodge at T-2; a commercial area close to T-3; and a tourism enterprise at CIAL's golf course.

In light of the aforementioned strategies and well-positioned finances to back them up, as demonstrated by the exceptional returns generated in the past, the firm is currently trading at a PE of 38x, with a valuation of ₹ 10,695 Cr as of November 2023. The company is trading at a forward multiple of 15x based on the Industry EV/EBITDA multiple of 17x. The target price of the company, taking into account several criteria and comparing it to the industry's EV/EBIDTA vs. company's EV/EBITDA, is ₹ 312/-.

𝗖𝗜𝗔𝗟 𝗜𝗣𝗢 𝗗𝗲𝘁𝗮𝗶𝗹𝘀

The company is in talks to go public in the next three to four years, though nothing is definite as of yet.

𝗖𝗜𝗔𝗟 𝗣𝗿𝗲 𝗜𝗣𝗢 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹:

A subsidiary of CIAL, Cochin International Aviation Services Limited (CIASL) was established to provide aviation training as well as maintenance, repair, and overhaul (MRO) services for aircraft. At Cochin International Airport, CIASL is presently providing line maintenance services to a number of foreign airlines.

The main goal of Air Kerala International Services Limited (AKISL), a subsidiary of Cochin International Airport Limited, is to open a low-cost airline with its base at Cochin International Airport Limited 18 International Airport in order to serve the large number of Keralites who do not live in the Middle East.

CIAL Infrastructures Limited (CIL) was established in 2012 with the aim of expanding CIAL's reach and leveraging the prospects in the power and other infrastructure domains. As the world's first entirely solar-powered airport, CIL has already put into service a 40 MWp solar power plant on the property of the airport.

A public limited company is CIAL Dutyfree and Retail Services Limited (CDRSL). CDRSL was established on March 1st, 2016 with the goal of maximizing the advantages that come with operating a duty-free and travel retail business.