In a chat, Mr.Kunj Bansal, ED & CIO, Centrum Wealth Management, shares his views on logistics space and CONCOR. Excerpts:
Q: You have a very large exposure to CONCOR. What is your take on this stock or any of the container or logistics stock?
Kunj Bansal: I largely concur with your views. The only thing I would like to add is that one of the reasons besides probably Morgan selling, one of the fundamental reasons is that the railways hiked the charges 21% or 27% recently. Now that is a big cost for CONCOR and it will be difficult to pass on in the immediate future. Over a period of time, I am sure it will pass it on to the clients. So that is one of the reasons on the fundamental side why these stocks saw some supply and as a result, what might happen is that the expectation for December and March quarter would have to be brought down.
But on a medium to long term basis in terms of growth prospects and in terms of existing fundamentals and valuations; it is a stock which continues to be good. Extending that whole logistics space, Gateway Distriparks is another company one should look at. So that is a company which gave excellent results for the September quarter after kind of remaining subdued for last five-six quarters and looks like will continue to do well. It also has an exposure to railway transportation business but as a percentage of its total turnover is, it is around 10% or so. So the impact that it will have because of the railway increased charges will not be as much as that on CONCOR.