ABC India.

ABC India Limited --520123, CMP 119 rs. EPS of 10.24 and PE of 11.62, Sector PE of 20-25 range.

ABC India Limited provides logistic services in India. Companies in this sector are Aegis Logistic, Aqua Logistic & Chartered Logistic. If one followed this companies closely one by one each company had multiplied 5-7 times over last 1-3 years. Chartered logistic the latest one to get higher valuations..

Now we think is the turn of ABC India. Company owns a fleet of trucks, hydraulic trailers, and prime movers. ABC offers material logistic, in-plant logistic, import-export logistic, and distribution/sales logistic services. ABC India also undertakes turnkey projects, representing various services, including port handling, customs clearing, and multi-modal transportation by road/rail/barge, as well as offers international freight forwarding services. It operates approximately through its 200 offices across India and have warehouse & storage space of 15,000 cubic meters. ABC India, through its 24 % joint venture interest in Nissin ABC Logistics Pvt. Limited, engages in logistic service business. Business model looks robust and they have all the required infrastructure in place, and CMP of the company is just 60 cr. This is mainly due to promoters not showing very good corporate governance and not looking for expansion, but now promoter are showing interest and this is shown by thr continuous buying from open market, as this shows that they are eying growth in future and create value for share holders...

Company is currently having market cap of 60 cr, which way too less if any new entrant want to set-up same operations than it will cost them much higher... so if we say 150-200cr approx market cap then also 100%-200% price rise possible...hence it is a very good buy...

Also Mr Madhusudan Kela(head-Reliance Mutual Fund) got 1.7 lac shares in March 2010.

Results of the company are good, and posted a EPS of 10.24 vs last year EPS of 2, growth of 5 holds. It was on before that trading at EPS of 7.89, so it went down and now again reviving....hence trading low and good time to collect....June qtr results should make it rise....CMP of 119 and PE of 11.6 against industry PE of 20-25.

So expect re-rating sooner or later....collect in range of 110-118 and hold it long...some land story is thr...but not including that....

Happy Investing
Sanket