This logistic stock doesn’t care about negative market sentiment; zooms 16.5 % in today’s trade

This logistic stock doesn’t care about negative market sentiment; zooms 16.5 % in today’s trade

by 5paisa Research Team Last Updated: Jun 10, 2022, 01:21 PM IST

Navkar Corporation Ltd has secured a license to operate as a category I Container Train Operator (CTO).

Indian market is in a downward momentum on June 10 2022, as global markets are not looking good. The US market closed deep in the red yesterday with Dow Jones closing at 32272, almost 2% down on June 9 2022. The US market fell due to higher inflation expectation numbers. Europe Central Bank also communicated to raise interest rates in July 2022. They are prepping for a 25-basis point hike. So, one can conclude that market sentiments are weak.

Despite the negative market sentiments, Navkar Corporation Ltd is up more than 16% on June 10 2022. At 1:14 pm, the stock is trading at Rs 58.9. Navkar Corporation Ltd belongs to BSE’s group ‘B’. The company is an S&P BSE SmallCap stock with a market capitalization of Rs 870 crore.

The stock has rallied on account of news regarding the company securing an agreement with the Railway Administration. Under this agreement, the company would be able to function as a category I Container Train Operator (CTO). The company received the license to operate with Arshiya Railway.

Recently, the company also announced its Q4 results. The company's Q4 revenue stood at Rs 205 crore with a YOY decline of 4.2% from Rs 214 crore. However, in Q4FY22 the net profit of the company grew by 33.33% YOY to Rs 20 crore, as against Rs 15 crore in Q4 FY21. Growth in net profit despite the decline in revenue was observed due to a significant improvement in its operating margin from 19% in Q4FY21 to 24% in Q4FY22.

Navkar Corporation provides cargo transit services covering Container Freight Stations, Private Freight Terminal, Inland Container Depots and Multimodal Logistics Parks. The company has a ROCE and ROE of 5.84% and 3.62%, respectively. The stock is currently trading at 13x PE.

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