Hold Allcargo Logistics, target price Rs 131: ICICI Securities

ICICI Securities has hold call on Allcargo Logistics Ltd. with a target price of Rs 131. The current market price of Allcargo Logistics Ltd. is Rs 130.3.

Allcargo Logistics Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 3200.18 Crore) operating in Logistics sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2748.18 Crore, up 16.86 % from last quarter Total Income of Rs 2351.59 Crore and up 53.24 % from last year same quarter Total Income of Rs 1793.33 Crore. Company reported net profit after tax of Rs -2.03 Crore in latest quarter.


Investment Rationale
Warehousing asset sales to Blackstone and corresponding deleveraging (from current net debt of Rs 13bn), along with operational turnaround in express logistics business (Gati) remain the key near-term monitorable. The brokerage maintains HOLD with a revised target price of Rs131/share (Rs141/share earlier).

Promoter/FII Holdings
Promoters held 70 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.7 per cent, DIIs 3.6 per cent and public and others 12.7 per cent.