https://entrackr.com/2023/05/exclusive-delhivery-in-talks-to-acquire-logistics-firm-gati/
Is this true? Why they bought it in the first place?
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I am not very sure of your question ,but AFAIK , supposing you had bought allcargo(Pre demerger) at 300 rupees , your purchase price gets adjusted like below …
Allcargo Logistics @ 136.89 Rs.
Allcargo Terminals @ 22.8 Rs.
Trans India Real Estate @ 140.31 Rs .
Now supposing you sell Allcargo logistics now at 290Rs. ,your per share profit should be calculated as (290 - 136.89) = 153.11 Rs. and taxed accordingly .
Same goes for the demerged entities when they list . Supposing in the happy case of you selling AllCargo Terminals @50 rupees on some future date,you should calculate your profit as 50- 22.8 = 27.2 rupees per share .
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Understood. Though I wanted to ask about the market price. Will the stock price be around the same as above cost of acquisition or would be it very different?
Allcargo and delivery management both decline on any such discussion, press release is released by Allcargo to SEBI
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What factors are there to stay invested in this stock?
Why are their payables and receivables so high? Their receivables is equal to their 3 year bottom line going by March 2023 Net Profit figures.
Most of the receivables are from Subsidiaries like loans given to them, majority of them are considered as good and unsecured as per annual report. Basically this business needs huge working capital requirements, Hence trade payables and receivable will be high. Company has to make a balance and run the show. However Trade payables started decreasing, which should be a good sign. Now as the demerger happening, some of their subsidiaries might be paying back the loans. Hence the number is low (or) These things would be moved to balance sheet of subsidiaries, As a result of it there would be decrease. however one need to wait to see their subsidiaries getting listed to see this.
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The demerged entities are getting listed tomorrow on 10th august .
e6b01432-8f7c-4f3a-b2e7-e3a42d028835.pdf (790.7 KB)
529e4c81-62b8-4672-9ee5-4e928396891a.pdf (720.7 KB)
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Both the demerged listed companies are in lower circuit as I thought it would be.
Transindia website doesn’t have any section for investors relations and allcargo terminal website has wrong financial documents. Today is date of Transindia result but they postpone it to 29th Aug
Transindia.pdf (118.2 KB)
What should be the fare value of Allcargo Terminals & Transindia Realestate?
Well thats is a interesting question. Since the demerger, I have been struggling to understand the business of Allcargo Terminals and TransIndia. From all the Info, I understand is,
Allcargo Terminals : They Operate CFS and ICD terminals across India having 800,000 TEUs capacity. I assume they are earning based on the Container Processing services, more like a toll operator. Also the business seems to be asset light, and future volumes of containers will drive the revenues.
TransIndia Real Estate: They are supposed to be having the Logistics parks and Leasing Services. But i am seeing that they have sold off many of their Logistics parks Assets and have purchased one. With this company, I am quite confused what exactly they do.
If someone has access to any writeup that explains the operations of both the companies in a crisp manner, please share.
Price estimates can be reliable generated, only once the business operations and revenue sources/potential is correctly understood. I am still learning for these two companies.
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You are correct
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Allcargo Terminals operate CFS and ICD terminals. It would be comparable to Container Corp India and Gateway Distriparks. The only difference is they don’t own any of the CFS/ICD land, but lease it from various parties including TransIndia Real Estate
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TransIndia Real Estate. It is hard to find a comparable company in this space. This acquires suitable land, gets all the necessary permissions, and then develops it (builds access roads, infrastructure, etc.) to be suitable for use as CFS, ICD, and logistics parks. It then leases it to companies such as Allcargo Terminals. It also sells developed CFS real-estate to infrastructure funds such as Blackrock for a mark-up.
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Promoters had given value of Rs. 160 to TREL. By that parameter it is trading at huge discount. They hold big land bank as shown on their website. The results though not very encouraging the discounting is more in line with real estate companies.
I have recently added to holdings received off demerger. Current investment over 1% of PF.
Its a risky bet, as not much information available on this. This is creating lot of confusion, and they took much more time to list in markets.
No reco. Its a high risk proposition due to lack of information.
I wonder what has happened to money that they got against sale of land bank - it runs into 100s of cr.
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Promoters had given value of Rs. 160 to TREL
Where do you see this value? Post demerger Allcargo went down ~ Rs.75, which reflects the current market value of the two demerged entities.
Both the demerged entities seem to be in good business areas with a long growth rate.
I wonder what has happened to money that they got against sale of land bank - it runs into 100s of cr.
Are you referring to the sale of existing parks to Blackstone
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“good” is a very relative term. I would like to hear from both companies granular details like:
- What all properties they own (% stake) or are leased (how long? at what rates/escalations/etc details?)
- What are their immediate plans for eah property/location? What is the current utilization and leverage that is their at each property/location?
and many more on similar lines.
Earlier when this was a big hotchpotch with all logistics related business under one umbrella, people would not focus on details, since this was all internal and would get cancelled out. Now these are independent companies, so we need to know the details of each asset. We cannot have a ATL without any assets after 4-5 years when leases end.
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Note: I said good business areas, not good businesses
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From what I know ATL leases all its properties (many from Blackrock, some from TREL, and some from others (all the ownership was transferred to TREL), The CFS network, capacity, distances to port, etc. are listed on their website. https://www.allcargoterminals.com/network/
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Similarly the assets owned by TREL are listed here https://www.transindia.co.in/services/logistics-parks/. A couple of new ones coming at Patna and Malur.
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Yes the blackstone sale.