Please refer to important disclosures at the end of this report
1
Navkar Corporation Limited (NCL) is engaged in Container Freight Station (CFS)
operations and related activities. The Company is focused on capitalizing the
available opportunities in the logistics space in western India. It is expected that
NCL will post revenue CAGR of 32.7% and PAT CAGR of 31.3% ove
r
FY2016-18E. Going forward, it is expected that NCL’s utilizations will improve
and the company would be able to garner a good chunk of business over the
next three to four years due to its rail advantage at both JNPT and Vapi. NCL’s
Vapi terminal suggests healthy pace of construction for both logistics park and
rail siding. Management expects 100k teus in FY17 given gradual volume ramp
up by local industries FY18 volume uptick to be much stronger given the benefits
of rail siding. Management expects to further reduce its pricing (Rail + ICD) once
its rail operations start, pricing will be 30-40% cheaper. Moreover NCL’s logistics
park will also offer warehousing and other value-added services, enabling it to
offer end-to-end logistics solution to importers/ exporters – this will pull demand.
Competitive threat is limited given strategic location with rail/ road (NH 8)
connectivity and new greenfield project may not be economically viable given
paucity of adequate land parcel, coupled with sharp escalation in land prices.
Hence Buy.
BUY
CMP `180
Stock Info
Sector
Beta 0.6
Bloomberg Code
Shareholding Pattern (%)
Promoters 72.9
MF / Banks / Indian Fls 16.5
FII / NRIs / OCBs 8.1
Indian Public / Others 2.6
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
Navkar Corp. (7.3) (2.5) 0.0
Note: Stock listed on September 9, 2015
52 Week High / Low 224/151
Avg. Daily Volume 38,653
Logistics
Market Cap (` cr) 2,557
10
BSE Sensex 26,150
Nifty 8,074
Face Value (`)
Reuters Code -
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Navkar Corporation
Others | Logistics
November 21, 2016
Navkar Corporation | Logistics
November 21, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Navkar Corporation
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)