The company reported a consolidated revenues of around 195 Crore and net earnings of 18 Crore and this compares with 178 Crore in revenues and 16.4 Crore in earnings for the Q1. There has been a steady growth in revenues and earnings and the growth is visible in both the regular Logistics division and its new Rail division.
The rail division continues to push the number by impressive percentage points, however on a lower base. The revenues from the rail division improved by 25% from 32 Crore in Q1 to 40 Crore in Q2. The company has been running its rail division with profits since it started few quarters back and not many can do it. It needs a lot of planning and strategy and that is something which Arshiya has proved to have again and again.
The company has reported an EPS of close to 6 for the H1. Our initial target for the full year EPS stands at around 15 and we continue to stay put with our targets. But for that, we would expect substantial addition in revenues and considerable addition in earnings from its first FTWZ which is currently operational.
The counter is currently available at a valuation of 18.5 times current year expected earnings and at around 12 times expected earnings for FY 12. We believe that the counter can trade at substantially higher valuations based on current year earnings itself.
$Team TMP
