[BSE: 532749|nse: allcargo]
CMp: 160.35 | tp: 184| duration: 6-12 months september 5, 2010
company
Allcargo’s main areas of business include Multi Modal Transport Operations, Container Freight Stations, Equipment Leasing, Warehousing and Project Logistics. With the acquisition of ECU Line, Allcargo is now the second largest company in the world in LCL consolidation business. It has presence in 60 countries with around 120 offices.
COMPANY DATA
Share Data
| Market Cap (Rs) | 2083.05 Cr |
| Issued Shares | 130,508,370 |
| 52 wk High/Low (Rs) | 151.15/218 |
Valuation Ratios
| To 31 Mar | CY09 | CY10E |
| Sales (Rs in Cr) | 20609 | 24730 |
| EPS (Rs) | 10.4 | 11.5 |
| P/E (x)
| 16.4 | 13.9 |
Shareholding Pattern (%) (Quarter ending June,2010)
| Promoters | 69.83 |
| FIIs | 9.43 |
| Others | 13.57 |
| Public | 7.17 |
positives
1. Indian government is investing heavily on infrastructure and which will be a huge boost the logistics division.
2. ECULine acquisition, though has been not performing up to the mark so far due to global recession, is expected to perform as expected.
3. Belief of global players like Blackstone group in the company.
4. Inorganic growth to improve the top-line of the company in the long run.
5. Dividend paying company
6. Low debt firm and high promoter holding.
concerns
1. Income tax liability of Rs.650mn and AllCargo Global has appealed against IT department.
2. Scouting for acquisition – NVOCC in china. Could prove to be a dampener in the short term
3. Global recessionary signals have still not died down completely and could impact the global business model of AllCargo.
valuations
AllCargoGlobal is trading close its 52 week low. Its trading at 13.9x PE CY10E. With a very low debt, high promoter holding and an acquisition that has started paying dividends, AllCargoGlobal is positioned to go higher in a big way. I believe it is ready to go to the next level of flexing its arms in the all the segments its involved in. I believe it can trade at a conservative PE of 16x with all the new revenues ready to flow in. I recommend a BUY on this scrip with a target of Rs.184 in another 6-12 months.
disclaimer
I am a newbie into equity research. This blog is to start posting my research reports on various stocks. The information and views presented in this report are prepared by me. The information is based on my analysis and on sources available on the public domain. Investors are requested to use this report as guidance and the final decision to be made by the investors themselves. I will not be responsible for any loss incurred by the investor based on this report.
Peer Comparison
