Accumulate VRL Logistics; target of Rs 335: Prabhudas Lilladher
Prabhudas Lilladher has recommended accumulate rating on VRL Logistics with a target price of Rs 335 in its research report dated May 22, 2017.
May 24, 2017 / 05:20 PM IST
Prabhudas Lilladher's research report on VRL Logistics
VRL 4QFY17 results were below estimates primarily due to poor performance in Bus Transportation (EBIT loss of Rs 43m Vs Ple of profit of Rs 114m). This swing resulted in a 36% decline in PAT to Rs 84m for Q4FY17 Vs Ple of Rs 196m. VRL has added 38buses in FY17, however local competition kept the fill factor around 80% Vs 85% in FY16.
We are downgrading our FY18/FY19 estimates primarily factoring in lower volume growth expectations in both GT/BT businesses which is resulting in earnings cut by 3.5% and 5.4% in FY18/FY19E. We also revise our Target price to Rs 335 from Rs 361 earlier valuing it at 25x FY19E PER.
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