Low-cost lignite operations, a steady expansion track record and healthy growing captive market in the state of Gujarat make GMDC a good bet in the mining space. At current valuations, the stock trades at 9.5 times its FY18E earnings.
The company has taken debt and also made purchase of assets to facilitate their capacity expansion plans in the next 3-4 years. The company is also undergoing cost pressures at Chanderia unit. Hold the stock.
With the new demand absorbing the excess supply in major markets the outlook for investment in tourism sector looks positive.Therefore, we recommend to Accumulate the stock for long term for a target of Rs 220.
It expects orders to grow at a CAGR of 33% over FY17-FY20 to 67.4 lac units p.a. from 28.6 lac units ordered currently. The overall revenues are expected to grow at a CAGR of 33.7% to Rs. 2,241.9 crore by FY20.
TCI XPS has had a much better margin profile vs. peers in the logistics business due to its sole focus on express logistics. The company is confident of improving EBITDA margins by 100bps every year for the next 3-4 years.