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I m p r o v e d m a r g i n s , s t a b l e v o l u m e s …
Allcargo Global Logistics’ (AGL) quarterly results for Q3CY11 were below
our expectations. The net profit declined by 1.4% YoY and 15.8% QoQ
due to higher depreciation & interest cost. AGL reported net sales of |
811.6 crore in Q3CY11, declining 5% QoQ and increasing 15.3% YoY. The
company reported a higher EBITDA margin of 12.9% mainly on account
of high realisations in the CFS segment (26.2% YoY growth) and stable
growth in MTO volume. The company registered a volume growth of
13%, 14% and 12.4% in MTO, CFS & ECU Line, respectively. ECU Line
continued its good performance wherein the EBITDA margins improved
by 30 bps YoY to 6.5%. The ensuing consolidated net profit after minority
interest stood at | 55.9 crore, a decline of 1.4% YoY and 15.8% QoQ.
ƒ CFS segment reports robust performance
During the quarter under review, all three CFS’ reported an increase
in realisations. The realisations of JNPT, Chennai and Mundra
increased by 39.3%, 22.3% and 4.0%, respectively, to | 13460/TEU,
| 9051/TEU and | 7125/TEU, respectively. The EBITDA per TEU also
improved YoY to | 8295/TEU for JNPT (Q3CY10 - | 5234/TEU), |
3710/TEU for Chennai (Q3CY10 - | 3202/TEU) and | 2865/TEU for
Mundra (Q3CY10 - | 1918/TEU).
V a l u a t i o n
At the current market price of | 125, the stock is trading at a P/E multiple
of 7.2x its CY11E EPS of | 17.3 and 7.2x its CY12E EPS of | 17.5. We
believe the EBITDA margins will sustain at ~12% for CY11E and CY12E
on the back of robust growth in volumes in CFS and MTO operations.
Furthermore, the improvement seen in ECU Line’s performance augurs
well for the company. We recommend a BUY rating on the stock with a
target price of | 175, 10.0x CY12E EPS.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
I m p r o v e d m a r g i n s , s t a b l e v o l u m e s …
Allcargo Global Logistics’ (AGL) quarterly results for Q3CY11 were below
our expectations. The net profit declined by 1.4% YoY and 15.8% QoQ
due to higher depreciation & interest cost. AGL reported net sales of |
811.6 crore in Q3CY11, declining 5% QoQ and increasing 15.3% YoY. The
company reported a higher EBITDA margin of 12.9% mainly on account
of high realisations in the CFS segment (26.2% YoY growth) and stable
growth in MTO volume. The company registered a volume growth of
13%, 14% and 12.4% in MTO, CFS & ECU Line, respectively. ECU Line
continued its good performance wherein the EBITDA margins improved
by 30 bps YoY to 6.5%. The ensuing consolidated net profit after minority
interest stood at | 55.9 crore, a decline of 1.4% YoY and 15.8% QoQ.
ƒ CFS segment reports robust performance
During the quarter under review, all three CFS’ reported an increase
in realisations. The realisations of JNPT, Chennai and Mundra
increased by 39.3%, 22.3% and 4.0%, respectively, to | 13460/TEU,
| 9051/TEU and | 7125/TEU, respectively. The EBITDA per TEU also
improved YoY to | 8295/TEU for JNPT (Q3CY10 - | 5234/TEU), |
3710/TEU for Chennai (Q3CY10 - | 3202/TEU) and | 2865/TEU for
Mundra (Q3CY10 - | 1918/TEU).
V a l u a t i o n
At the current market price of | 125, the stock is trading at a P/E multiple
of 7.2x its CY11E EPS of | 17.3 and 7.2x its CY12E EPS of | 17.5. We
believe the EBITDA margins will sustain at ~12% for CY11E and CY12E
on the back of robust growth in volumes in CFS and MTO operations.
Furthermore, the improvement seen in ECU Line’s performance augurs
well for the company. We recommend a BUY rating on the stock with a
target price of | 175, 10.0x CY12E EPS.
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