Expect 25% returns in Allcargo Global Logistics: Tulsian

2087 Investors following Allcargo. Share this News with them.

0

Like this story, share it with millions of investors on M3

Expect 25% returns in Allcargo Global Logistics: Tulsian

Expect 25% returns in Allcargo Global Logistics, says SP Tulsian, sptulsian.com.

Post your opinion here

 

0

Tweet

Share on Tumblr

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

Expect 25% returns in Allcargo Global Logistics , says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Allcargo Global Logistics have posted very good results and they have December ending as their year ending. Going by their Q2 results, they have posted an EPS of Rs 5 and they are the integrated logistic service providers having their container freight stations, warehousing, air freight, multi model transports and presence in abroad into three countries. Looking at the share holding patter; 70% is held by the promoter, 25% is held by the institutional investor of which 14% is held by Blackstone, so the public float is very low."

He further added, "Looking at the performance and valuations given by the market to other logistic companies, all are ruling at a rich valuations than this company, while this company has been a consistent performer and I am expecting that probably they should be able to post an EPS of Rs 20 plus for calendar year 2011."

"Considering the demand and growth of this sector they should be able to post a growth of 25% in topline and bottomline going forward. Share is now ruling at a PE multiple of 8, price to book is also quite reasonable at 1.5 considering the asset base company because the present book value is close to about Rs 100 and taking a Rs 20 EPS for calendar year 2011 the price to book can be seen at 1.3-1.4 one year going forward."

"Taking all this into consideration promoter stake is unpledged; they have not pledged any of their stake. All these are giving lot of confidence and this seems to be quite a good stock, one can expect a return of 25% over next one year if taken an investment view from here on."