Navkar Corporation Ltd. share price target

Navkar Corporation Ltd. (Navkar) continued to deliver a decent performance in 3QFY18. Panvel revenue improved ~0.8% YoY while consolidated revenue increased 16.2%. Vapi volumes grew ~20.9% QoQ to 10,571 TEUs led by volumes handled at Hazira due to partial shift in marble volumes from JNPT. Realisation at Panvel were flat while the same in Vapi grew 11% YoY to INR 19,013/TEU. Consolidated EBITDA increased by 13.9% YoY to INR 376 mn. Direct-To-Port Delivery (DPD) led impact was stable QoQ, we expect limited impact from DPD going ahead. Management expects final clearance for Vapi's rail siding shortly. Ramp-up at Vapi facility is expected to start meaningfully contributing to NCL's overall sales in subsequent quarters. Hence, we maintain our BUY recommendation with a TP of INR 310, 25x FY19E EPS of INR 12.4 on expected...

Navkar Corporation (Navkar) reported a good set of numbers for 3QFY2018. The consolidated top-line grew by ~16% yoy. On the operating front, the company reported a margin contraction on account of sharp increase in operating expenses. However, the net profit grew by ~21% yoy due to higher sales and lower interest cost. Outlook and Valuati..

Panvel volumes improved ~4% QoQ (up ~3% Yo) led by 12% YoY rise in exports though imports declined ~4% YoY. Direct-To-Port Delivery (DPD) led impact was stable QoQ, as CFSs share of overall DPD volumes has been rising steadily (>60% now vs. 39% in Q4FY17).

Panvel volumes were flat QoQ (down 2% YoY) given intermittent slowdown due to Direct-To-Port Delivery (DPD) volumes. Management highlighted CFS share of overall DPD volumes has increased to 61% vs. 39% in February, which will reduce overall volume-led pressure going ahead. EBITDA margin improved ~6..

Navkar Corporation (NCL) has delivered a decent performance in 1QFY18. Surpassing volume growth, its consolidated revenue grew by 9.6% YoY (flat on QoQ basis) to Rs988mn. Volume grew by 4.7% YoY (4.4% QoQ) to 86,073 TEUs, while realisation grew by 4.6%YoY (-4.5% QoQ) to Rs11,482/TEU. Realisation growth was aided by higher contribution from Vapi ICD and improved revenue-mix and lower share of empty cargoes, which stood at 4,524 in 1QFY18 compared to 5,300 in 1QFY17. EBITDA increased by 10% YoY and 11.6% QoQ to Rs390mn partly due to certain one-off expenses relating to: (1) loss on sale of asset; (2) employee bonus accounting post IND-AS; (3) higher operating and employee cost relating to Greenfield project at Vapi in...

Navkar Corporation (NCL) has delivered a dull performance in 4QFY17. Revenue growth surpassed volume growth, and grew by 8.4% YoY and 8.2% QoQ to Rs991mn. Volume grew by 1.5% YoY (flat QoQ) to 82,406 TEUs, while realization grew by 10% QoQ and 6.8% YoY to Rs12,022/TEU. Realization growth was aided by improved revenue-mix and lower share of empty cargoes, which stood at 2,574 in 4QFY17compared to 4,247 in 3QFY17. However, NCL's EBITDA declined by 7.5% YoY and 1.7% QoQ to Rs349mn partly due to certain one-off expenses relating to: (1) loss on sale of asset; (2) employee bonus accounting post IND-AS; (3) higher operating and employee cost relating to Greenfield project at Vapi, which is in completion...

Q3FY17 performance was in line, as Panvel volumes were flattish YoY / QoQ this was largely led by 9% YoY rise in import volumes, while export volumes declined 11% YoY given delay in agri and related exports. However, Panvel's adj. EBITDA margin (Rs/teu; ex-forex) grew 6% QoQ to Rs 4,285, prima..

Navkar Corporation (NCL) reported subdued set of numbers for 3QFY2017. The consolidated top-line grew by ~4% yoy on the back of lower exports, which was impacted on account of demonetization. Moreover, on the operating front, the company reported a margin contraction on account of higher operational costs. The net profit de-grew by ~27% y..

Stable Performance; Strong Volume Growth on the Cards Navkar Corporation (NCL) has reported decent performance in 3QFY17, with its consolidated revenue growing by 4% YoY and 2% QoQ to Rs916mn. Notably, revenue growth surpassed volume growth, which grew by 2% YoY (flat 1% QoQ) to 82,472 TEUs. Further, realization rose by 2.5% QoQ and YoY to Rs10,933/TEU, aided by improved revenue-mix and lower share of empty cargoes (at 4,247 containers in 3QFY17 vs. 4,400 containers in 2QFY17). EBITDA adjusted for forex loss declined by 2% YoY (up +6% QoQ). While higher operating and employee expenses largely...

Navkar Corporations (NACO) 3QFY17 revenue / EBITDA/APAT came in 0.1/2.4/ (4.6) % ahead of estimates, respectively. 3QFY17 EBIDTA/TEU for JNPT assets declined ~6.5%YoY despite higher import TEU?s (610bps expansion of share of imports in mix YoY). Ramp up of volumes at Vapi is lower than expectations, with NACO handling 2,129 TEUs vs. 1225 TEUs in 2QFY17.

Navkar Corporation (NCL) reported a subdued set of numbers for 2QFY2017. The consolidated top-line grew by ~5% yoy; while on the operating front, the company reported a margin contraction on account of prolonged monsoons that resulted in higher operational costs. The net profit grew by ~4% yoy due to lower subdued sales and poor operating..

Navkar Corporation (NACO) 2QFY17 EBITDA at Rs 334mn was ~8.3% below our estimates, as prolonged monsoons resulted in higher operational costs. Despite ~7.9% YoY volume growth to 81,105 TEUs, net revenue growth for the JNPT assets was muted at ~0.7% YoY, as realisations declined ~6.6% YoY to Rs 10,461/TEU. Volumes at Vapi improved with NACO handling 1,225 TEUs vs. 305 TEUs in 1QFY17.

Seasonally Weak Quarter ... Capacity Ramp-up at Greenfield Units to Boost Growth Navkar Corporation (NCL) has reported tepid numbers in 2QFY17 with its consolidated revenue growing by 5% yoy (flat qoq) to Rs900mn. However, revenue growth was lower compared to volume growth of 7% yoy (up 1% qoq) to 82,330 TEUs. This is attributable to decline (-3% yoy & -1% qoq) in realization to Rs10,665/TEU due to adverse revenue mix despite lower share of empty cargoes at 4,400 containers in 2QFY17 compared to 6,900 containers in 2QFY16. EBITDA adjusted for forex loss fell sharply by 16% yoy (-13% qoq) due to higher cost incurred owing to incessant...

Q2FY17 performance was in line, as Panvel volumes grew 8% YoY (flattish QoQ, primarily led by imports; +15% YoY in Q1).However, adj. EBITDA margin (Rs/teu; ex-forex) declined ~12% QoQ due to heavy monsoon which led to (a) higher operating overheads due to delay in transportation and (b) adverse EXIM..

BUY Navkar Corporation Ltd CMP at Rs.190 and add on dips to band Rs. 190 - 173 for the Sequential Targets Rs. 218 - 245.

Navkar Corporation (NCL) reported a good set of numbers for 1QFY2017. The consolidated top-line grew by ~10% yoy while on the operating front, the company reported a margin contraction on account of higher employee and other operating expenses. The net profit grew by ~41% yoy due to lower interest cost and higher other income.

Outlook and Valuation: Angel Broking estimate NCL to post a revenue CAGR of 32.7% and PAT CAGR of 31.3% over FY2016-18E. They have factored in lower utilization levels of 34.7% and 42.6% for FY2017E and FY2018E, respectively. At the current levels, the stock is trading at 16.7x its FY2018E earnings. Historically, NCL has consistently grown at JNPT and increased its utilisation from 68% in FY2012 to 87% in FY2015 by leveraging on its rail advantage during periods when JNPT posted flattish volume growth. Going forward,expect NCL’s utilizations to improve;expect the company to be able to garner a good chunk of business over the next three to four years due to its rail advantage at both JNPT and Vapi. They maintain our Buy recommendation on the stock with a target price of `265.

Well-placed to Cash in Likely Rise in EXIM Trade Navkar Corporation's (NCL) reported numbers for 1QFY17 are largely in-line with our estimate. Its consolidated revenue grew by 10% yoy (-1% qoq) to Rs902mn. However, growth in revenue was lower than volume growth, which rose by 15% yoy (up 1% qoq) to 81,866 TEUs, primarily due to 6% yoy (3% qoq) decline in realization to Rs10,748/TEU on account of higher share of empty cargoes at 5,300 containers vis--vis 1,200 in 4QFY16. EBITDA adjusted for forex loss rose by 2.2% yoy (flat qoq) slower than revenue growth largely due to 3-4% yoy higher cost...

Navkar Corporation (Navkar) reported a good set of numbers for 4QFY2016. The consolidated top-line grew by 8.5% yoy. On the operating front, the company reported a margin expansion on account of sharp decline in other operating expenses. The net profit grew by ~107% yoy due to significantly higher other income and a better operating perfo..

Greenfield project to provide next leg of growth Navkar Corporation Ltd. (NCL) has reported marginally lower-than-expected profit in 4QFY16 largely due to lower other income and higher tax outgo sequentially. Its consolidated revenue grew by 8.5% yoy & 3.6% qoq to Rs914mn. However, its revenue growth was lower than volume growth of 18.5% yoy (flat qoq) to 81,183 TEUs, as realization fell by 9% yoy (up 4% qoq) to Rs11,050/TEU due to higher export-import mix at 48:52 and higher share of empty cargo in overall cargo handled. EBITDA after adjusting forex loss of Rs11.6mn rose 38% yoy & 3% on...

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...