Arshiya International - Maintain Buy - Emkay

Reco: BUY
CMP: Rs 126
Target Price: Rs 172

- Results above expectation mainly driven by higher than expected growth in the logistic business. Lower tax-rate (10.8%) leads to higher than expected PAT growth.

- AIL's gross capex run-rate slows to Rs 890mn in Q1FY13. The focus in FY13 would be on the operations of assets wherein most capex is already incurred.

- New customers, CISCO and GE, adds lot of credibility to AIL's FTWZ business. But, drop in VOS-to-rental ratio in Mumbai FTWZ QoQ disappoints.

- Maintain Buy rating with TP of Rs 172. At TP, the stock would trade at EV/EBITDA of 7.0x/5.8x & P/BV of 1.0x/0.9x on FY13E/14E.

Source : Equity Bulls

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