Axis Securities's research report on Navkar Corp Navkar Corporation’s (NACO) Q3FY16 operational performance was in line with our estimates. Volumes grew 18.4% YoY (up 7.5% QoQ) as it continued to gain market share at JNPT. However, given higher growth in export/ empty volumes (commanding lower margin), its adj. EBITDA margin (Rs/teu) declined QoQ (stable YoY over 9MFY16). Navkar started Vapi operations in Jan-end, however there were some operational glitches initially (for customs/ banking etc), which have been sorted now. We expect Vapi volumes to ramp up, given attractive pricing (~20% lower to peers) for export and import volumes. Maintain BUYwith TP of Rs 256 (18x FY18E PE; discounted back by 15%) given (a) ramp up at Vapi terminal and (b) benefits from capacity expansion at Panvel terminal over FY15-18E.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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