MOSL: ALLCARGO LOGISTICS (Buy)-Beat led by higher-than-estimated profitability in P&E segment
Allcargo Logistics: Beat led by higher-than-estimated profitability in P&E segment
(AGLL IN, Mkt Cap USD0.4b, CMP INR110, TP INR140, 27% Upside, Buy)
- 4QFY19 revenues increased 12% YoY to INR17.3b (our est. INR18.8b), led by 5% YoY growth in the MTO segment. EBITDA increased 44% YoY to INR1.07b, (our est. INR968m), led by improvement in EBIT from the P&E segment. PAT increased 4.3x YoY to INR793m (our est. INR501m).
- Margins decline for CFS and MTO; improve for P&E: (a) MTO revenues rose 12% YoY to INR15.4b due to volume growth across key markets; volumes grew 5% YoY to 167,949 TEUs, while EBIT margin contracted 0.3pp YoY to 3.7%. (b) CFS revenues rose 5% YoY to INR1.2b; volumes grew 6% YoY to 80,882 TEUs and EBIT margin contracted ~2pp YoY to 27.5%. (c) P&E revenues grew 24% YoY to INR921m, with an EBIT of INR86m, as against a loss of INR366m in 4QFY18.
- FY19 performance: MTO/CFS volumes grew 17%/12%. Net sales/EBITDA/PAT increased 14%/19%/36% YoY to INR69b/INR4.5b/INR2.4b.
Allcargo Logistics Limited is an India-based holding Company. The Company is engaged in providing integrated logistics solutions. It offers logistics services across multimodal transport operations, inland container depot, container freight station operations, contract logistics operations, and project and engineering solutions. Its segments include Multimodal Transport Operations, which involves non-vessel owning common carrier operations related to less than container load consolidation and full container load forwarding activities; Container Freight Stations (CFS)/Inland Container Depot (ICD) Operations, which is involved in import/export cargo stuffing, de-stuffing, customs clearance and other related ancillary services, and Project & Engineering Solutions (P&E), which provides integrated end-to-end project, engineering and logistic services through a fleet of owned/rented special equipment, such as hydraulic axles, cranes, trailers, barges, reach-stackers, forklifts and ships.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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