Spa Research is bullish on Navkar Corporation has recommended buy rating on the stock with a target price of Rs 310 in its research report dated February 02, 2018.
Spa Research's report on Navkar Corporation
Navkar Corporation Ltd. (Navkar) continued to deliver a decent performance in 3QFY18. Panvel revenue improved ~0.8% YoY while consolidated revenue increased 16.2%. Vapi volumes grew ~20.9% QoQ to 10,571 TEUs led by volumes handled at Hazira due to partial shift in marble volumes from JNPT. Realisation at Panvel were flat while the same in Vapi grew 11% YoY to INR 19,013/TEU. Consolidated EBITDA increased by 13.9% YoY to INR 376 mn. Direct-To-Port Delivery (DPD) led impact was stable QoQ, we expect limited impact from DPD going ahead. Management expects final clearance for Vapi's rail siding shortly. Ramp-up at Vapi facility is expected to start meaningfully contributing to NCL's overall sales in subsequent quarters. Hence, we maintain our BUY recommendation with a TP of INR 310, 25x FY19E EPS of INR 12.4 on expected benefits from volume ramp-up at Vapi.
OutlookWe expect container volumes, revenue and PAT to clock CAGR of 17%, 29.8% and 47.6% respectively between FY17-19E. We maintain our BUY rating on the stock with a target price of INR 310 based on 25x FY19E earnings.
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