03/10/12


ALLCARGO LOGISTICS
Expansion to Play a Vital Role


COMPANY PROFILE

Allcargo Logistics, an Avashya Group company, is among the leading logistics companies in India. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station (CFS) Operations and Project & Engineering Solutions as an integral part of its logistics services.

The company currently operates out of 140 own offices in 65 countries and gets supported by an even larger network of franchisee offices across the world. Allcargo Logistics is among India's largest publicly owned logistics companies.

Allcargo Logistics is worldwide leading player in LCL business. Last year the company acquired two Hong Kong based companies engaged in Non Vessel Owning Common Carrier (NVOCC) business in China and other parts of the eastern region.

Today, Allcargo is among the largest operators in the country with world-class CFS facilities in Jawaharlal Nehru Port Trust (JNPT), Chennai, Mundra and Indore. Allcargo cater to the hinterland of North India through its Inland Container Depots (ICD) at Kheda, Pithampur in Madhya Pradesh and at Dadri, Greater Noida in NCR.
ALLCARGO’S CFS/ICD CAPACITY

ParticularJNPT CFSJNPT – II CFSChennai CFSMundra CFSKheda ICDDadri ICDTotal
Nearest port/rail siding18 km18 km7 km7 km3 km0.3km12km*
Annual capacity (teu)144000200000145000480004000075000652000
Land area (acre)282324161110112
Warehouse area (m2)114002280014257122103100516068927
*: Weighted average








INVESTMENT  RATIONAL 
  • Allcargo is world leader in LCL forwarding. It also has a great network spanning world over for NVOCC. Going forward, the company is expanding in segments like ship owning which will help the company’s Multimodal Transport Operations. We observe that the company has maintained top line growth of 25% since last four years and we expect it will maintain same growth in coming years led by  the ramp up in the project division and the commissioning of the additional 100,000 TEUs CFS capacity near JNPT.
  • Expanding CFS capacity at JNPT to boost growth: With the 2nd CFS near JNPT getting commissioned in 2QFY13, AGLL’s Mumbai CFS capacity will rise to 2.44 lk TEUs. This would boost company’s share at JNPT upwards from the current 7%
  • Project order book provides revenue visibility : The Engineering solution segment possesses order book of Rs, 300 cr. which provides revenue visibility for the next three to five quarters.
  • Currently the company is trading  at 7x of its earning multiple at Rs. 130. We expect the company to report EPS growth of 30% during FY13 and FY14  to Rs. 26 and Rs. 33. We recommend Buy on Allcargo at CMP with price target of Rs. 165 for the time horizon of 12-15 months.


 
Price Information
Latest Price (Rs)
135


1 Year Price Var%
-2.76
Key Ratio
52 Week High (Rs)
156
Latest EPS (Rs)
17.48
52 Week Low (Rs)
109
TTM PE (x)
7.74
Beta
0.48
Price/BV(x)
1.13
Face Value (Rs)
2
Dividend Yield%
1.15
Industry PE
13.38
MCap/TTM Sales(x)
0.51
Market Cap(Rs Cr.)
1725
Book Value (Rs)
119.8
 
Financial Highlights (Consolidated)(Rs. in Crore)
Description
201203
201012
200912
200812
200712
Equity Paid Up
26
26
25
22
20
Reserve
1463
1154
954
558
448
Total Debt
768
378
204
344
126
Gross Block
2153
1382
924
708
558
Net Sales
4271
2863
2061
2314
1613
PBIDT
574
298
247
230
147
PAT
298
176
141
122
86
Dividend %
75
150
50
25
50
Adj. EPS(Rs)
21.86
12.71
10.41
9.63
7.56
Adj. Book Value (Rs)
114
90
78
52
46
Quarter on Quarter (Consolidated)(Rs. in Crore)
Particulars
201206
201203
YoY %
Net Sales
975
854
14.18
Total Expenditure
862
752
14.66
PBIDT (Excl OI)
113
103
10.69
PAT
59
69
-14.54
PBIDTM% (Excl OI)
11.64
12
-3
PBIDTM%
12.12
13.14
-7.76
PATM%
6.06
8.09
-25.09
Adj. EPS(Rs)
4.26
5.09
-16.31


Peer Group Comparison (Consolidated)(Rs. in Crore)
Company Name
Year End
Net Sales
PBIDT
PAT
EPS(Rs)
PBIDTM%
PATM%
ROCE%
ROE%
Allcargo Logistics
201203
4271
574
298
21.86
13.43
6.97
22.7
22.34
Arshiya Internatl.
201203
1057
279
121
20.53
26.41
11.42
10.06
15.47
Gateway Distriparks
201203
821
264
136
12.19
32.16
16.51
16.07
18.92

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