Saturday, March 19, 2011

ABG INFRALOGISTICS - BUY

Company                  : ABG INFRALOGISTICS
BSE Code                  : 520155
Group/Index           : B
CMP                          : Rs.172/-
FV                              : 10
Recommendation    : BUY







                                                                 
ABG Infralogistics is promoted by Agarwal family and  started operations in 1984 as a crane rental company .Thereafter as a forward integration ,company ventured into the erections of machineries for various type projects.After successfully completed projects for large clients like IPCL,Essar oil,Bharat oman refinaries..etc ,ABG started to pay much attention for port operations. Currently,company operating container terminals in ports like Kandla,Kolkata,Paradip,Vizag,Haldia and Mangalore.Recently ,company awarded the
development right for the North Cargo Berth-II of the Tuticorin port trust.Another similar order is to develop the Western Quay-6 (WQ-6) berth of Visakhapatnam port and operate it for 30 years.Some of the mentioned projects are implemented through subsidiaries having majority interest.Company is now known  as an undisputed leader in planning  developing and operating container handling berths.Like crane lending operations ,profitability of port operations are linked to the volume handled by various berths in ports.Export from India is expected to rise many fold due to the revival in  world economies and the purchasing power of Indian middle class is expected to boost imports as well. Recently ,ABG came out with an open offer @ Rs.224 ,where current market price is @ Rs.172/- .Company also declared an interim  dividend of 50 % . Close to 65 % of the total equity is held by the promoters and 23 % with mutual funds and FII's. Considering the leadership position in port operations and the possibility of increase in trade activities of India with various countries,ABG infra logistics have a great future .One may consider an inclusion of ABG Infra logistics in their portfolio at CMP of Rs.172/-
                                                                                                                                       

8 comments :

  1. Hi Valuepick,

    Excellent growth pick.......but valuepick what are ur thoughts on debt levels ?

    Regards,
    Vikas

    ReplyDelete
  2. I agree ,currently the debt level is slightly high.But I believe that,since the debt is taken for funding various projects which are at the various stages of implementation and the income from such projects are just started to flow ,ABG can manage it using the improving cash flow.

    ReplyDelete
  3. Does it belong to ABG shipyard group?

    ReplyDelete
  4. No,doubt.Both cos are promoted by Agarwal Family

    By
    Debashish

    ReplyDelete
  5. its going down wot u will say abt this

    ReplyDelete
  6. Yesterday was the record date for 50% dividend ,hence some offloading

    ReplyDelete
  7. Replies
    1. At present some labour issues in Kandla,so wait

      Delete

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