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Allcargo Global Logistics: Performance below expectation…
Allcargo Global Logistics (AGL) quarterly results for Q4CY10 were
below our expectations on the back of higher then expected increase in
operating expenses. AGL reported net sales of | 703.7 crore in Q4CY10,
which remained flat QoQ and registered growth of 29.5% YoY. During
the quarter, container freight station (CFS) volumes grew 28% YoY
while multimodal transport operation (MTO) volumes grew 12% YoY.
The consolidated net profit after minority interest stood at | 41.9 crore,
an increase of 47.7% YoY. However, it declined 26.1% QoQ.
Highlights of the quarter
ƒ CFS volumes increased 28% YoY to 61637 TEUs. During the
quarter, all three CFS’ reported an increase in volumes. The volumes
at JNPT, Chennai and Mundra increased 18.1%, 48.7% and 25.9%,
respectively
ƒ ECU Line reported a good performance in Q4CY10. ECU Line’s
revenues increased 35% YoY to | 513.4 crore while the EBITDA
stood at | 30.3 crore. The subsequent net profit after minority
interest stood at | 17.2 crore as against a net loss of | 2.3 crore in
the corresponding quarter last year
ƒ During the quarter, volumes from the MTO segment (standalone)
declined by 6.4% QoQ to 6088 TEUs. The revenue declined 12.9%
QoQ to | 54.6 crore
Valuation
At the current price of | 143, the stock is trading at a P/E multiple of 11.0x
its CY10 EPS of | 13.1 and 10.2x its CY11E EPS of | 14.0. AGL’s
acquisition in Hong Kong based companies engaged in the NVOCC
business in China is expected to increase its presence in high growth
markets. Furthermore, the improvement seen in ECU Line’s performance
augurs well for the company. Hence, we recommend a BUY rating on the
stock with a target price of | 161, 11.5x CY11E EPS.
ƒ The JNPT CFS registered a volume growth of 18.1% YoY to 33,372
TEUs. Realisation increased by 0.2% YoY to | 11088 per TEU
ƒ The Chennai CFS registered a volume growth of 48.7% YoY to 20954
TEUs. Realisations increased by 32.8% YoY to | 8500 per TEU
ƒ The Mundra CFS registered a volume growth of 25.9% YoY to 7311
TEUs. Realisations increased by 26.4% YoY to | 6349 per TEU
Capex Plans
The capex plan for CY11 is ~ | 250 crore. Out of this, the CFS and ICD
capacity expansion is estimated at | 100-125 crore. Capex to the tune of
~ | 80 crore is expected for the equipment division while other regular
capex is expected to be to the tune of | 15- 20 crore.
Valuation
At the current price of | 143, the stock is trading at a P/E multiple of 11.0x
its CY10 EPS of | 13.1 and 10.2x its CY11E EPS of | 14.0. AGL’s
acquisition in Hong Kong-based companies engaged in the NVOCC
business in China is expected to increase its presence in high growth
markets. Furthermore, the improvement seen in ECU Line’s performance
augurs well for the company. Hence, we recommend a BUY rating on the
stock with a target price of | 161, 11.5x CY11E EPS.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Allcargo Global Logistics: Performance below expectation…
Allcargo Global Logistics (AGL) quarterly results for Q4CY10 were
below our expectations on the back of higher then expected increase in
operating expenses. AGL reported net sales of | 703.7 crore in Q4CY10,
which remained flat QoQ and registered growth of 29.5% YoY. During
the quarter, container freight station (CFS) volumes grew 28% YoY
while multimodal transport operation (MTO) volumes grew 12% YoY.
The consolidated net profit after minority interest stood at | 41.9 crore,
an increase of 47.7% YoY. However, it declined 26.1% QoQ.
Highlights of the quarter
ƒ CFS volumes increased 28% YoY to 61637 TEUs. During the
quarter, all three CFS’ reported an increase in volumes. The volumes
at JNPT, Chennai and Mundra increased 18.1%, 48.7% and 25.9%,
respectively
ƒ ECU Line reported a good performance in Q4CY10. ECU Line’s
revenues increased 35% YoY to | 513.4 crore while the EBITDA
stood at | 30.3 crore. The subsequent net profit after minority
interest stood at | 17.2 crore as against a net loss of | 2.3 crore in
the corresponding quarter last year
ƒ During the quarter, volumes from the MTO segment (standalone)
declined by 6.4% QoQ to 6088 TEUs. The revenue declined 12.9%
QoQ to | 54.6 crore
Valuation
At the current price of | 143, the stock is trading at a P/E multiple of 11.0x
its CY10 EPS of | 13.1 and 10.2x its CY11E EPS of | 14.0. AGL’s
acquisition in Hong Kong based companies engaged in the NVOCC
business in China is expected to increase its presence in high growth
markets. Furthermore, the improvement seen in ECU Line’s performance
augurs well for the company. Hence, we recommend a BUY rating on the
stock with a target price of | 161, 11.5x CY11E EPS.
ƒ The JNPT CFS registered a volume growth of 18.1% YoY to 33,372
TEUs. Realisation increased by 0.2% YoY to | 11088 per TEU
ƒ The Chennai CFS registered a volume growth of 48.7% YoY to 20954
TEUs. Realisations increased by 32.8% YoY to | 8500 per TEU
ƒ The Mundra CFS registered a volume growth of 25.9% YoY to 7311
TEUs. Realisations increased by 26.4% YoY to | 6349 per TEU
Capex Plans
The capex plan for CY11 is ~ | 250 crore. Out of this, the CFS and ICD
capacity expansion is estimated at | 100-125 crore. Capex to the tune of
~ | 80 crore is expected for the equipment division while other regular
capex is expected to be to the tune of | 15- 20 crore.
Valuation
At the current price of | 143, the stock is trading at a P/E multiple of 11.0x
its CY10 EPS of | 13.1 and 10.2x its CY11E EPS of | 14.0. AGL’s
acquisition in Hong Kong-based companies engaged in the NVOCC
business in China is expected to increase its presence in high growth
markets. Furthermore, the improvement seen in ECU Line’s performance
augurs well for the company. Hence, we recommend a BUY rating on the
stock with a target price of | 161, 11.5x CY11E EPS.
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