Navkar Corporation (Navkar) reported a mixed set of numbers for 3QFY2016. The consolidated top-line grew by ~5% yoy. On the operating front, the company reported a margin contraction on account of higher operating and employee expenses. However, the net profit grew by ~83% yoy (after factoring in forex losses) due to higher other income and lower interest related expenses. Top-line grew ~5% yoy: The consolidated top-line grew by ~5% yoy to ~`88cr owing to subdued EXIM volumes. Volume grew ~7% yoy to 80,815 TEUs, mainly due to a higher mix of imports. The commodity mix comprised of agro products (~43%), hazardous products (~14%) while other product categories accounted for the balance ~43%. PAT grew ~83% yoy despite operating margin contraction: On the operating front, the company reported a margin contraction of 154bp yoy to 42.0% on account of higher operating and employee expenses. As a result, the EBITDA came in flat yoy at ~`37cr. However, the net profit grew by ~83% yoy to ~`29cr due to higher other income and lower interest related expenses. Outlook and Valuation: We estimate Navkar to post a revenue CAGR of ~26% and PAT CAGR of ~31% over FY2015-18E. We have factored in lower utilization...