Accumulate Navkar Corporation; target of Rs 171: Dolat Capital

Dolat Capital's research report on Navkar Corporation

For Q4FY18, the revenue grew by 16.2% to ` 1,150.8mn YoY; up 8.1% QoQ from ` 1,064.6mn driven by strong volume growth at Vapi of ~2x YoY at 14,443 TEUs (Export-6,557; Import-7,876; Hazira-2,430), while the volume handled at Panvel remained flat at 73k TEUs. EBITDA grew by 41.6% YoY to ` 494.8mn, increased by 31.6% QoQ from ` 376.1mn. As per the management, the EBITDA margins increased by 773 bps YoY to 43% and increased by 767 bps QoQ from 30.6% with the operationalisation of RTG cranes. Net profit grew by 34.5% YoY to ` 276.5mn and 11.6% QoQ from ` 247.8mn. Net profit margin grew 328 bps YoY to 24%.

Outlook

For Q4FY18, the revenue grew by 16.2% to ` 1,150.8mn YoY; up 8.1% QoQ from ` 1,064.6mn driven by strong volume growth at Vapi of ~2x YoY at 14,443 TEUs (Export-6,557; Import-7,876; Hazira-2,430), while the volume handled at Panvel remained flat at 73k TEUs. EBITDA grew by 41.6% YoY to ` 494.8mn, increased by 31.6% QoQ from ` 376.1mn. As per the management, the EBITDA margins increased by 773 bps YoY to 43% and increased by 767 bps QoQ from 30.6% with the operationalisation of RTG cranes. Net profit grew by 34.5% YoY to ` 276.5mn and 11.6% QoQ from ` 247.8mn. Net profit margin grew 328 bps YoY to 24%.