Coastal Roadways---worth a look

Coastal Roadways (courtesy Suman Speaks)
CMP: 24.90

The company purchased 25 out of the 40 heavy duty vehicles for the Castrol Ltd. contract. The contract is so huge that if they supply 100 more vehicles then that will also be absorbed. But the company has to behave according to it infrastructure facilities.The rest 15 vehihcles will be added in the second week of next month. It has opened the Refrigerated Container Service to all the branches in India. Previously it was available only in Bangalore branch.It has introduced Palletisation of Cargo, which calls for high quality mechanised handling of cargo. It has state of the art ware- house facility. It has property worth crores. As everyone is aware that the real estate market is hotting up in the metros and land valuations is competing with that of gold. It has near monopoly of its services in the Eastern India.It has aggressive plans ahead. The disel fuel hike will not too much affect the bottomline in this quarter as it is almost over. But such charges will be subsequently passed on to the customers in the subsequent quarters. The company is aggressively pursusing to acquire more vehicles to cater to FMCG, Petroleum, Electronics etc. sectors. It is in talks with a number of players in various sectors and more deals like the Castrol ones are likely to follow suit.It is coming up with very good results in the September quarter.