Recommendation From Department Stores And Transportation - Logistics Sector

DSIJ selects two aggressive stock picks in every issue, with a 15 day horizon based upon the bullish trend during that period. For this issue, we are recommending companies from the Department Stores and Transportation - Logistics

Trent

BSE Code: 500251

Volume: 68970

Trent is engaged in the retail sale of readymade garments. The company primarily operates stores across three formats viz. Westside, Star and Landmark. It offers products in approximately 60 cities through 90 stores. On September 12, the share price of company split from Rs 10 to Rs 1 to encourage liquidity. CARE, the rating agency revised the long-term rating assigned to the bank facilities and instruments of Trent. The ratings also factor in the Joint Venture (JV) with the British major, Tesco PLC. The company will witness operational improvement because of established track record in the retail segment and reduction in financial commitments towards the hypermarket segment. On financial front, Trent’s revenue increased by 14.72 per cent to Rs 401 crore in Q1FY17 as compared to same period in previous financial year. The company’s EBITDA to rose by 25.58 per cent to Rs 49.83 crore in Q1FY17 on yearly basis. Its PAT also boosted by 60.64 per cent to Rs 23.3 crore in Q1FY17 as compared to same period in previous fiscal year.

CMP: 267

BSE Code: 536264

Volume: 204312

Tiger Logistics (India) is a third party logistic provider (3PL) which provides integrated services to its customers. The company is an international freight forwarder, custom clearance agent, transporters, customs consultants and project transportation specialist. In the next big step towards meeting an April 1, 2017 deadline to implement the mega reform Goods and Services Tax Bill, the Union Cabinet has approved the setting up of a GST Council which will fix the tax rate. Tiger Logistics (India) plans to invest in owing the CFS (Container Freight Stations) in Gujarat. It will be able to assist present corporate customer base and provide end to end solutions for the entire cargo base moving by road to Gujarat Gateway Ports. The company is growing at a CAGR of 30 per cent for the last three years and it will intend to continue the same growth prospect following its business model. Tiger Logistics (India) has been embarking upon a growth trail following various expansion initiatives to tap the potential opportunity in logistics services through implementation of Enterprise Resource Planning system with adoption of necessary IT platform for better process efficiency. The company has incorporated subsidiary company with the name of Tiger Logistics Pte Ltd in Singapore.