Buy Allcargo Logistics; target of Rs 390: Kotak Securities

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26 Aug, 2025 12:21

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Kotak Securities research report on Allcargo Logistics “Allcargo Logistics (ALL) has reported yet another quarter of strong PAT of Rs 635 mn which was above our expectation of Rs 560 mn. Volumes have considerably improved for the CFS segment (2nd quarter of positive surprise) at ~55,000 TEUs (+14% YoY) while volumes in the Multimodal Transport Segment (MTO) segment post consolidation of the acquisitions - US based Econocaribe Consolidators and Netherlands based FCL Marine Agencies was at ~109,000 TEUS (highest ever and +42% YoY and +7% QoQ). Sales were reported at Rs 14.6 bn increasing 11% QoQ and 36% YoY.” “Post consolidation, we estimate the MTO segment to grow at ~31% in FY15 and ~9% in FY16. Strong relationships will help the company to outperform its peers and report stable volumes in the CFS division. We now assign a PE of 16x FY16E earnings to the stock on the back of 1) Immune nature of MTO (LCL) business to weak trade: 2) Latest acquisitions which help diversify the business: 3) Stable performance of the CFS segment and 4) estimated recovery in global trade. Recommend "BUY" on Allcargo Logistics with an increased TP of Rs 390 (old TP - Rs 295),” says Kotak Securities research report. 

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