Get in Kesar Terminals and Infrastructure: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "One of the reasons why Kesar Terminals and Infrastructure came up after a long time on my radar of course we have been advising investors to take in since a long time now. It has announced a date for June 24 as date for the bonus decision for the board. What is interesting about this company is that we have been hearing a lot about this re-rating of the chemical industry as whole." "This is one company that is uniquely placed to take advantage of that. When you have chemicals growing so well whether it is exports or imports you would need storage. This is one company that actually specialises in bulk liquid storage. They have a plant at CFS at Pipavav that they are setting up. They have one bulk liquid terminal even at Kakinada port in Andhra Pradesh which is one of the fastest growing belts for this particular business. What I found interesting was they have also gone into non-edible oils, petro products and edible oil. So, it is a host of things. It is not just chemicals alone but a lot of bulk liquid options," he said. "The group is into sugar and alcohol for the last 75 years and the sugar business is throwing up a lot of cash which they are pumping into the logistic business. For a logistic company available at 15 times price to earnings on a trailing basis it is actually mouth watering because you don’t get such kind of business. Replacement cost itself is so high and the market cap is just about Rs 240 crore currently."He further added, "This multimodal logistic park they are setting up in Madhya Pradesh in a place call Pawarkheda is right in the centre of the railway map of India which is going to be a huge advantage. So, we have heard of Nagpur being a huge advantage of sorts from that perspective but this, multimodal logistic park means you will have CFS, trains sliding, road transport everything converging on that. I think it is uniquely placed and you will see and hear about this company a lot more in the future but probably a godd time to get in."