Scripscan:ABC India Ltd
Cmp:125
code:520123
Story:Five points to qualify ABC as a great medium to longterm buy.
1)ABC India Limited provides logistic services in India. It owns a fleet of trucks, hydraulic trailers, and prime movers. The company offers material logistic, in-plant logistic, import-export logistic, and distribution/sales logistic services. ABC India also undertakes turnkey projects, representing various services, including port handling, customs clearing, and multi-modal transportation by road/rail/barge, as well as offers international freight forwarding services. It operates approximately 200 offices and 15,000 cubic meters of storage space in India. In addition, the company operates a petrol pump at Pune. ABC India, through its 24 % joint venture interest in Nissin ABC Logistics Pvt. Limited, engages in logistic service business.Business model looks robust and they have all the required infrastructure in place.It had everything always but due to the lethargic promoters it never did wonders as far the stock price is concerned.But now it seems the promoters have finally awakened after a long sleep and are committed to make good amount of shareholder wealth.
2)Hints of promoter awakening?Check the below link then.Slowly and steadily they are increasing their stake through open market purchases.Consider you are the owner so you ought to know most about your business right?If the future is good and prospects are bright you ought to hike your stake,right?Thats what the ABC guys are doing bigtime.
http://www.bseindia.com/Insidetrade_ScripWise.asp?scripcd=520123
3)The kind of assets they are sitting is gigantic to say the least.Say if some new company comes and plans to have the same kind of assets like ABC the value would come around 250-300crs whereas the full company,ABC as of now is just valued at 63crs.ABC india easily qualifies as a great logic buy.
4)The order book looks robust after recently bagging the huge 100 odd cr order.Understanding all this methodologies and logic MR Madhusudan Kela(head equities at India's largest mutual fund house, Reliance Mutual Fund)bought a massive 170000 shares some months ago.Google up to know the credentials and ability of the guy.
5)Valuation wise its quoting at 5 PE its FY12 earnings.ABC india can blast anytime to unaimagineable levels.ABC india also posses some 26 bigha prime properties near Assam.If they develops can give a massive intrinsic value.I have excluded that and have only taken the assets and core business into consideration.Altogether a great buy.
btw:Volumes are very negligible in this counter so please accumulate it slowly.Else if any big buying takes place it would only move in upper circuits.
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Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
