SANCO TRANS - BUY

SANCO TRANS -  is a Chennai based company operating in Transportation and logistics space .Company operating two container freight stations, one in Chennai and the other in Thoothukudi. Its Chennai facility is the first  CFC started in private sector in India way back in 1989.Company is also handling Air cargo and warehousing operations.An area of 2 Laks Sqft is available for its warehousing service. Sanco is also in the space of hiring material handling equipments including various types of cranes,Tippers,trucks..etc.It is also doing customs clearance services and transport operations.Company is planning to expand its warehousing operations by creating additional space.Company has shown good growth in last financial year.Sanco's fortunes are directly linked with the growth in India's export/import growth which shows a positive sign in recent past.In last FY company posted a turnover of Rs.63 Cr and a net profit of Rs.8.30 Cr .On its tiny equity base of just 1.8 Cr EPS was Rs.46/-.In the first quarter of this FY , Sanco posted a turnover of Rs.17.5 Cr v/s Rs.12 Cr and a net profit of Rs.2 Cr v/s just 34 lakhs. First qtr  EPS is Rs.11.25 v/s Rs 2.At CMP of Rs.238/- it is trading at a P/E multiple of 5 on FY 2011 EPS. Logistics is a space where our country need much improvement and scope is large in this space. Sanco is a pioneer in this industry with deep knowledge in this space  and it is a one stop service point for exporters and importers.Considering the growth opportunities,experience of management and cheap valuation of stock - there is every chance for a re-rating in this scrip from current market price of Rs.238/-