Buy Blue Dart; target of Rs 2305: Firstcall Research

Firstcall Research is bullish on Blue Dart and has recommended buy rating on the stock with a target of Rs 2305 in its January 4, 2013 research report.
 
“Blue Dart Express, incorporated in 1983, is one of the leading logistics company in the world. Blue Dart Express is South Asia's premier courier, and integrated express package Distribution Company. The company has the most extensive domestic network covering over 27050 locations, and service more than 220 countries and territories worldwide through group company DHL, the premier global brand name in express distribution services. The company has ISO 9001-2008 countrywide certification by Lloyd’s Register Quality Assurance for entire operations, products and services. The company is State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control Reservations. The company has its warehouses at 63 locations across the country as well as bonded warehouses at the 7 major metros of Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad. It provides Ecommerce B2B and B2C initiatives including partnering with some of the prime portals in the country.”
 
“The company’s net profit jumps to Rs. 322.00 million against Rs. 297.50 million in the corresponding quarter ending of previous year, an increase of 8.24%. Revenue for the quarter rose 7.49% to Rs.4180.80 million from Rs.3889.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.13.57 a share during the quarter, registering 8.24% increase over previous year period. Profit before interest, depreciation and tax is Rs. 529.10 millions as against Rs. 497.10 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs 2077, the stock P/E ratio is at 33.24 x CY12E and 28.24 x CY13E respectively. Earning per share (EPS) of the company for the earnings for CY12E and CY13 is seen at Rs.62.48 and Rs.73.55 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 23% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 20.79 x for CY12E and 17.78 x for CY13E. Price to Book Value of the stock is expected to be at 6.11 x and 5.02 x respectively for CY12E and CY13E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 2305 for medium to long term investment,” says Firstcall Research report.

Institutional holding more than 40% in Indian cos

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