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You are here : IndiaNotes >> Research & Analysis >> Companies >> Allcargo Logistics Ltd. >> Research

Allcargo Global: Steady growth, buy

Jaypee | Published: 08 Feb, 2011  | Source : ValueNotes.com | Follow Author | Add to my Favourites


Allcargo Global – Steady growth with quarterly hiccupss

On a consolidated basis Allcargo Global Logistics (AGL), Q4CY10 sales have shown growth of 29% YoY and marginal degrowth QoQ to Rs7037mn. EBIDTA grew by 94% YoY and declined by 4% QoQ. EBIDTA margin declined by 50bps from 12.3% to 11.8% QoQ. EBIDTA for the quarter was largely in line with estimates at Rs829mn.

Depreciation charged was substantially less in Q3CY10 as compared to Rs183mn in Q4CY10 due to the adjustment applied on the Q3CY10 depreciation after revision in useful life of the company owned Cranes. Net Profits showed growth of 44% YoY and decline of 26% QoQ to Rs447mn much below estimates primarily due to the substantial surge in depreciation expenses in the quarter.


Valuation:


At CMP of Rs143, the stock is trading at 9.3 times and 8.4 times its CY11E and CY12E EPS. With strong Indian Infrastructure growth, demand for project engineering segment is expected to grow. Investors are recommended to buy the stock for a 12-month price target of Rs229.


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