10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, December 18, 2011

Logistics sector:-Industry outlook/prospects/competition/high and low prices/beneficiaries/listed stocks/recommendation/containers/views/potential

The performance of logistic companies in the quarter ended June 2011 was decent on account of healthy growth in container volumes. Barring Container Corporation of India (Concor), most of the major players in the sector recorded double-digit growth in revenue in the quarter. However, a slowdown in the domestic market tapered down the growth in the 2nd quarter

SURFACE TRANSPORTATION:Transport Corporation of India (TCI) is the largest listed player in the segment. The company has a fuel escalation policy in 70% of its contracts where any increase in fuel price is passed on to the customer.Revenues from freight division, which is the largest segment of TCI, remained flat y-o-y at 185 crore. However, the company posted a decent 10% growth in net profit on the back of higher contribution from supply chain management (SCM) division. EBIT margin for the SCM division is higher at 19% compared with nearly 11% for the freight division.The auto sector has been the major contributor of SCM volumes. However, the slowdown in the automobile sector is likely to impact revenues in the near term.

CONTAINER RAIL:Concor is the largest player in this segment. Performance of Concor in the June 2011 quarter was subdued due to a fall in freight volumes. Still, the company reported a 21% jump in its June 11 quarter profits on a lower tax rate, and growth in both other income and valueadded services. Volumes on the export import segment (ExIm) increased marginally 2.5% to 501,000 twenty-foot equivalent units (TEU), where as domestic volumes fell 13% to 110,000 TEUs. An increase in freight charges prompted domestic shippers to look for alternative modes of transport, thereby impacting the volumes. The company has signed MoUs with Krishnapatnam, Kariakal and Kochi ports to provide rail services to the hinterland that will increase freight volumes.

CONTAINER FREIGHT STATION (CFS) / INLAND CONTAINER DEPOT (ICD):AllCargo Logistics and Gateway Distriparks are the other two major listed players operating in the segment. Both these players reported a healthy growth in revenue on the back higher CFS volumes. For AllCargo, revenues from CFS segment increased 60% to 73 crore mainly due to an increase in average realisation at JNPT CFS on the back of a rise in dwell time. The revenue from its subsidiary - ECU Line, a global MTO player - reported a 35% growth at 600 crore. On a consolidated basis, the company improved its EBITDA margin by 250 basis points to 12.3% on the back of various cost reduction measures and rationalisation of procurement system.

With capacity additions at Mundra, JNPT and Chennai ports, AllCargo may be able to maintain the growth in the coming quarters.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: 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.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner