Arshiya Q3FY10 Result Update ; Results above expectation; Maintain Buy ; Target: Rs 230
Arshiya International Ltd
Results above expectation; Maintain Buy
BUY
CMP: Rs 187 Target Price: Rs 230
Arshiya reported Q3FY10 results which were above our estimates with revenue growth of 17% to Rs.1.3bn, driven by 13.5% growth in the logistics segment. EBITDA during the quarter grew by 24.6% to Rs.217mn. EBITDA margins grew by 99bps to 16.2%. PAT for the quarter grew by 301.2% to Rs.526mn.
During the quarter, Arshiya entered into an agreement to sell the marketing rights along with all existing customers and hosting infrastructure of their software Cyberlog to Aurion Pro for ~Rs.398mn. This amount has been realized as other income in this quarter. On the rail transport operations front, Arshiya currently has 6 rakes in operation and plans to add 3-5 more till the end of Q4FY10.
We expect the company to report revenue of Rs.5.8bn in FY10 and Rs.7.7bn in FY11. We expect net profit of Rs.571mn in FY10E and Rs.1.1bn in FY11E as we expect the Mumbai & Delhi FTWZs, phase 1 to generate revenue in these fiscal years. The stock currently trades at 19.5x FY10E and 10x FY11E earnings. We maintain our Buy rating on the stock with target price of Rs.230 (based on 12x FY11 earnings).
Regards,
Amit Adesara
Emkay Global Financial Services Ltd.
Member: Bombay Stock Exchange. Member: National Stock Exchange of India.
Paragon Center, H – 13 - 16, 1st Floor,
Opp. Century Mills, Pandurang Budhkar Marg,
Worli, Mumbai - 400 013.
Tel : 6612 1241
Fax : 6624 2410
E-mail: amit.adesara@emkayglobal.com
--------------------------------------------------------------------------------
DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and may not be reproduced or redistributed to any other person. The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries, including the United States. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. No person associated with Emkay Global Financial Services Ltd. is obligated to call or initiate contact with you for the purposes of elaborating or following up on the information contained in this document. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon. Neither Emkay Global Financial Services Ltd., nor any person connected with it, accepts any liability arising from the use of this document. The recipient of this material should rely on their own investigations and take their own professional advice. Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. We and our affiliates, officers, directors, and employees world wide, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed herein or may perform or seek to perform investment banking services for such company(ies)or act as advisor or lender / borrower to such company(ies) or have other potential conflict of interest with respect to any recommendation and related information and opinions. The same persons may have acted upon the information contained here. No part of this material may be duplicated in any form and/or redistributed without Emkay Global Financial Services Ltd.'s prior written consent. No part of this document may be distributed in Canada or used by private customers in the United Kingdom. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.
No comments:
Post a Comment