Allcargo Logistics Q4 Review -  Investment Thesis Backed By ‘Gati’ Turnaround: ICICI Securities

A gantry cranes loads a shipping container onto a truck from a ship docked at the Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)

Allcargo Logistics Q4 Review - Investment Thesis Backed By ‘Gati’ Turnaround: ICICI Securities

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ICICI Securities Report

Allcargo Logistics Ltd.’s posted an impressive Q4 FY21 Ebitda of Rs 2.2 billion (our estimate: Rs 1.7 billion).

Turnaround in Gati (subsidiary of Allcargo Logistics) operations can accrue significant value to the company.

The management appears to be on the right track in Gati to-

  1. delever through divestment of non-core assets and

  2. bring about operational improvements to increase ‘express’ segment Ebitda to 12% in the next three to five quarters.

Multimodal transport operation business earnings continues to surprise, yet buildup in receivables has led to increase in net debt half-on-half.

Project and equipment segment has again reported Ebit loss – cashflow highlights Rs 161 million of provision for doubtful debts/advances in H2 FY21.

Click on the attachment to read the full report:

ICICI Securities Allcargo Q4FY21 Results Update.pdf


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