Buy Allcargo CMP: Rs.311.50;Target: Rs.403

Allcargo Logistics Ltd (AGL), part of The Avvashya Group, is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions.

1QF16 results came in above SSLe, primarily on the profitability front, aided by better-than-anticipated operating performance and lower effective tax rate of 19.8 per cent (SSLe: 30 per cent). 

The company witnessed robust performance across all three verticals: 

• The MTO (multi modal transport operator) segment’s (about 83 per cent of top-line) volumes increased 11.3 per cent y-o-y to 1.13 lakh twenty-foot equivalent units (3.2 per cent above SSLe); 
• The CFS segment’s volumes expanded 8 per cent y-o-y to 78,727 TEUs (in-line SSle); and c) the P&E segment’s revenues grew 22.2 per cent y-o-y to Rs.142.5 crore (13.1 per cent above SSLe). On a consolidated basis, AGL’s topline grew 11.9 per cent y-o-y to Rs.1,480 crore (2.9 per cent above SSLe), led by strong performance across all three segments as mentioned above.