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/-
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