VRL Logistics Ltd - Company Update - BUY - TP Rs.500 - Kotak

Set to meet future needs

- VRL has reported a very strong H1FY18 and we expect the trend to continue in future quarters as well. We estimate volume trend to improve for VRL in the logistics segment with shift of volumes from the unorganized segment post GST implementation. While the bus segment is set to expand and grow under the Amended Motor vehicle Act, outlook also remains strong with factors like: 1) Government initiatives to improve road infra; 2) Effective management of fuel cost; 3) Effective internal control systems; 4) a strong Management team and 5) Healthy estimated GDP growth. We are introducing FY20 numbers and "Maintain BUY" with an increased TP of Rs 500 (from Rs 450) valued at 25x FY20E earnings.

Shares of VRL Logistics Ltd was last trading in BSE at Rs.425 as compared to the previous close of Rs. 421.8. The total number of shares traded during the day was 4298 in over 139 trades.

The stock hit an intraday high of Rs. 426.9 and intraday low of 422. The net turnover during the day was Rs. 1826850.

Source : Equity Bulls

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