Allcargo logistics share – “Logistics Firm Allcargo Group is bullish on its business prospects and expects to grow at an average 15% annually, mainly driven by organic growth”, its chairman Shashi Kiran Shetty has said.
Recently in December-2022, AllCargo logistics company has acquired 75% of a Germany logistics company Fair Trade GmbH. This will strengthen its position in one of the strategic market in Europe. Fair Trade is a strong company in Europe in consolidation segment. Allcargo also got CCI approval to acquire 46.86% of the equity share capital in Gati Limited in India. Allcargo expanding its business through acquisition globally.
Allcargo Logistics share – Company Overview:
Allcargo logistics share price has given over 15% return to its investor. The company is strong fundamentally. Headquarter in Mumbai, India, Allcargo Logistics is an end-to-end logistics service provider that operates in 180 countries globally. The company is India’s leading integrated logistics company and the world leader in LCL (less than container load cargo) consolidation. Allcargo Logistics started its operation in 1994 as a cargo handling operator in Mumbai port. The company has achieved many milestones over the last 25 years of operations.
- Allcargo Logistics operates mainly in four segments as
- Multimodal Transport Operations
- Freight Stations/Inland Container Depots
- Project and Engineering Solutions
- Logistics Park
- The company has created Avvashya CCI Logistics Private Limited in 2016 to enhance the quality of supply chain management and to carry out Contract Logistics business.
- Allcargo Logistics acquire strategic stakes in GATI in the year 2020 and in 2021 the company raised its stake in GATI to 50% to strengthen its Express Logistics business.
- In the year 2021, Allcargo Logistics also acquired a 65% controlling stake in Nordicon, operates in less than container load (LCL), and rail consolidated in the Nordic region offices in Sweden, Norway, Finland, and Denmark, to expand its operation in the LCL segment in the Nordic region.
- Allcargo Logistics has a strong global network with over 300 offices in 180 countries.
- ECU Worldwide – the global leader in LCL consolidation Founded in 1987 in Belgium, Gati – India’s pioneer in Express Distribution and Supply Chain Solutions, and Avvashya CCI – Contract Logistics and Chemical Warehousing solutions are part of the Allcargo logistics group.
Allcargo Logistics share – Company Financial Overview
Allcargo reported strong revenue growth in FY 2022. The total income from operation reached INR 20072 crores in FY 2022, which is about a 91% YoY increase from FY 2021. An increase in revenue from the Multimodal Transport Operations (MTO) division and the addition of Gati Limited, which was not there in the previous year, drive the revenue for this fiscal. The company also registered a 139% increase in EBITDA to achieve INR 1516 crores and a remarkable 349% jump in PAT to INR 900 crores.
Allcargo Logistics share – Company Valuation parameters
Allcargo Logistics is a Mid-cap company with a market cap of INR 9622 crores with a face value of INR 2 per equity share. The return on capital employed (RoCE) of the company is 26.4% and return on equity is 32.1% FY 2022. Earnings per share (EPS) increased over 5 times from 7.04 in FY 2021 to 37.68 in FY 2022. The debt-to-equity ratio is 0.59 in FY 2022.
Allcargo Logistics Revenue and other parameters
| All amounts in INR Crores except percentages (Year ended March 31) | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Total Income from Operation | 6894.86 | 7346.24 | 10498.10 | 20072.07 |
| Profit After Tax for the Year | 242.63 | 228.27 | 78.11 | 883.40 |
| PAT Margin | 3.50% | 3.03% | 1.64% | 4.61% |
| Return on Equity | 16.11% | 19.61% | ||
| Return on Capital Employed | 12.52% | 17.61% | ||
| Net Debt / Equity | 0.33 | 0.62 | 0.54 | 0.32 |
| Earnings Per Share-Diluted (in INR) | 9.85 | 9.08 | 7.04 | 37.68 |
Related Reading about Logistics companies – CONCOR CORP, TCIEXPRESS, NATIONAL LOGISTICS POLICY
Promoters have not changed their holdings and remain the same at 69.92% over the last two quarters that ended June 2022. DII has increased its stake in the company from 1.83% in March 2022 to 2.01% in June 2022. However, FII holdings in the company slightly reduced from 9.55% in March 2022 to 9.33% in June 2022.
The government of India has announced the National Logistic Policy intending to reduce the cost of logistics to below 10% from currently 14% of GDP. This will further boost exports while reducing the cost of the products domestically. To make India a manufacturing hub, the country needs a strong logistic sector along with other infrastructure. Allcargo Logistics company is focusing on higher Capex, expanding through both organic and inorganic ways that will further boost the EPS of the company in the next financial year.
Allcargo Logistics Company Promoters and Management
Mr. Shashi Kiran Shetty is the founder and chairman of Allcargo since its incorporation. He has been pioneering the Indian logistics sector for more than two decades.
Allcargo logistics Share Price target – Technical Analysis
The Allcargo Logistics share price is looking strong in the technical chart with strong trading volume over the last few trading sessions. The trading volume of the script is above 100 DMA during this period. The Allcargo Logistics share price has crossed its previous swing high at the INR 390 level and consolidating there.
Once the stock starts bouncing along with support from the broader market, Allcargo logistics share price target can be 480 level in the short to medium term. The Allcargo Logistics share price is trading above all its short and long-term moving averages on the daily chart. The stock is also trading above its super trend signals and is in a bullish up move. I will buy Allcargo Logistics share at this level or on the correction.
