Brokerage house Anand Rathi is bullish on Snowman Logistics and has recommended buy rating on the stock with a target price of Rs 116 in its research report dated March 27, 2015.
Anand Rathi's report on Snowman Logistics
"Founded in 1993and commenced operation in 1998, Snowman Logistics Limited (Snowman) is an integrated temperature controlled logistics services provider with an ability to service customers on a pan-India basis. Snowman is promoted by Gateway Distriparks Limited, a leading supply chain logistics company. The company operates primarily in warehousing (both Temperature Controlled Services (TCS) & Ambient) and transportation (both TCS & Ambient) Under TCS the company offers cold storage warehouses and reefer transportation services to its clients while Ambient services caters ton on temperature controlled warehousing and transportation."
"During the latest financial year (FY 14), the company has reported a ~35% growth in sales at ~153.4 millions as against ~1137million. Its EBITDA stood at ~380 million in FY-14 as against ~255million. On segment basis, the company’s revenue from warehousing business too dat ~766. 3million in FY-14 while transportation business contributed ~743.9million. Snowman has currently warehouses at 23 locations across 14 locations. It operates 370 reefer vehicles of which 63 is owned and 307 leased for primary and secondary distribution."
"The company’s majority of business comes from clients operating in to niche business areas including Dairy products, Meat &Poultry, Seafood, Ready to eat, Fruits & Vegetables, Healthcare & Pharmaceuticals and Quick Service Restaurants (QSR). With a rising demand for integrated niche offering across the country, regionally well spread players like Snowman are expected to witness both increase volumes and gain market share.We initiate our coverage on Snowman Logistics Limited with a BUY rating and a target price of Rs 116 per share", says Anand Rathi's research report.
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