Buy Allcargo Logistics; target of Rs 163: Motilal Oswal

Motilal Oswal’s research report on Allcargo Logistics

4QFY18 revenue rose 13% YoY to INR15.4b (est. of INR19.8b), led by 18% YoY growth in MTO revenue. EBITDA stood at INR739m (-30% YoY, -21% QoQ), lower than our estimate of INR994m, due to higher provisions in the P&E segment. Adj. PAT fell 68% YoY (-47% QoQ) to INR185m (est. of INR444m), as the tax rate was higher at 65% v/s 18% in the year-ago period.

Outlook

P&E segment should see reduced losses due to an uptick in asset utilization. Valuations at 13.4x/10.3x FY19/20E appear attractive, given AGLL’s strong fundamentals and earnings CAGR of 27% over FY18-20E. We value AGLL at 14x FY20E P/E and arrive at a TP of INR163. Maintain Buy.

For all recommendations report,click here

Disclaimer:The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *