Kotak Securities Strong volume trend in both the key segments of multimodal transport operations (MTO) and container freight station (CFS) with stable realisations and loss in the project engineering have been the highlights of financial performance for ALL in H1FY19. Healthy performance in H1FY19 has given us confidence of a decent performance in FY19. Also, we believe that most of negatives have got factored in the current price. Maintain estimates with an unchanged target prices of Rs 145 at 15x FY20 earnings. The total volumes in the CFS division was reported at 170,814 TEUs (+18.5% YoY). Growth was driven by Kolkata operations and increased share of direct port delivery (DPD) CFS volumes at JNPT. The growth was also because of low base effect. Realisation in the MTO segment is a pass through and dependent on freights in the container business. With weak container business, realisations and margins have fallen in the MTO segment. However, volume growth remains strong. The PED division continues to report weak numbers and is a drag on overall profitability of the company. The performance of this segment is highly dependent on private capex cycle which is at low levels currently. Similarly, the contract logistics division is not doing well for the company. The company has been increasing its focus on project transportation, where the current executable order book is around Rs 175 crore. The management believes that renewed revival in 8 core sectors would help increase capacity utilisation. The company also intends to explore opportunities in Sri Lanka, Myanmar, Nepal and Bangladesh. It has tasted initial success in Bangladesh & Nepal.