Allcargo Logistics may rally to Rs 200, says PN Vijay

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Allcargo Logistics may rally to Rs 200, says PN Vijay

Allcargo Logistics may rally to Rs 200, says PN Vijay, Portfolio Manager, www.askpnvijay.com.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by PN Vijay See what other Experts & Brokerages are saying about Allcargo See messages about Allcargo

Allcargo Logistics may rally to Rs 200, says PN Vijay, Portfolio Manager, www.askpnvijay.com .

Vijay told CNBC-TV18, "Allcargo Global is a different story in the sense that it's a fairly integrated player in logistics with emphasis in marine logistics unlike Gateway which is into land logistics. One needs to spend a little bit of time understanding this business. It has got three verticals; one is the mobile operations, which is the carriers and the lighterage carriers and the other is the core business which is the freight stations, the customer freight stations, the CFS that they have in JNPT, Mundra and Chennai. The third is the ICD that is the inland container depot where imported goods are kept by companies inland."

He further added, "The triggers on this stock are all three. On the marine operations they acquired a fairly size company in China which is a huge market then in JNPT they have doubled their capacity for CFS which is getting operational and in ICD they have put up new facility at Dadri in Delhi NCR which is adding to the capacity so lot of growth there. The concerns about Allcargo is that its fortunes are very much linked to global trade and if global trade sort of gets very slump apart from non oil trade or non-bulk trade if the container trade doesn't grow then they have a volume growth and they have all sorts of problems. It has got calendar year closing incidentally, it's trading around Rs 140 or so and I think its trading pretty cheap and we are giving a target of Rs 200 for the stock mainly driven by the various triggers I have mentioned."

Disclosure: It is safe to assume that the stocks discussed have been recommended to clients.