Look at Navkar Corporation, says Prakash Diwan

Prakash Diwan of prakashdiwan.com told CNBC-TV18, "This happens to be new entrance to logistics pack. Every time we talk about logistic people do get very interested. The kind of numbers that some of these companies like Allcargo Logistics and Aegis Logistic have reported there is a little bit of positivity around this space. Navkar Corporation happens to be a new kid in the block where it just came through an IPO recently, so it is not yet discovered in that perspective. What I like about this company is, it is only private sector player who has container freights stations (CFS). It is a CFS operator as we call it at Jawaharlal Nehru Port Terminal (JNPT).""Every port has these freight operators where you can actually dump your containers before they get on to the ship or the same way when they come into India from the port before they get on to the rail, roads transportation. That is a very huge bottleneck of sorts which adds to your working capital locking and stuff like that. So, private sector operators have been much better at it, so you know what Container Corporation of India (Concor) gets as a valuation and is one little guy who is doing it much more efficiently but very quietly and still hasn’t kind of got its due.""In fact we have seen an increase in market share for Navkar right from about 4 percent couple of years back to 6 percent plus which is huge in a competitive environment like this. Mind you JNPT does manage almost like 40 percent plus of our cargo load. So, going forward that is likely to get some sort of an uptick. Interestingly what they did is they set up, they got on to building a 98 acre SEZ, a logistic SEZ and an ICD, which is an inland container depot at Vapi. This is near Umbergaon where, people don’t know much about but that is the place where Ramayana was shot, the serial.""ICD is different so basically this is another step in that logistic chain. You don’t really go right next to the port but you keep on putting things there before they get on to the port. The moment it goes to the CFA the charges are very high to store, so it has to move to the port within about 48 hours otherwise it keeps on going up ex-potentially. Navkar has done that, from a valuation perspective it is juts available at close to 15 times FY17," he added. "Even if you were to give it a 40-45 percent discount of Concor’s long-term average PE multiple in a couple of years this stock could probably be about 50 percent up easily in the next 12 months and may be beyond. So, they have plans, of course a lot depends on how the uptake in freight containerisation in India takes off. However, Delhi-Mumbai corridor, the DFS the daily freight station all of these will kind of see a lot of move and specially one GST comes in logistic is going to re-define complete internally and externally. So, I believe this is a stock that could probably be in the radar whenever people allocate to logistic as a sector you will probably see decent money coming in here," he said.