Allcargo Logistics share

Allcargo Logistics share will go up? Learn 6 factors before investing in the company

Allcargo Logistics share

Allcargo Logistics share – Company Overview:

Allcargo logistics share 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)
2019202020212022
Total Income from Operation6894.867346.2410498.1020072.07
Profit After Tax for the Year242.63228.2778.11883.40
PAT Margin3.50%3.03%1.64%4.61%
Return on Equity16.11%19.61%
Return on Capital Employed12.52%17.61%
Net Debt / Equity0.330.620.540.32
Earnings Per Share-Diluted (in INR)9.859.087.0437.68

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.

Mr. Suresh Kumar R is the CEO of the company. He has over 30 years of experience in the telecom, consumer, mobile commerce, and media industries. His experience spans building and growing businesses, change management as well as planning investments, customer-centricity focus, digital transformation, and P&L, Revenue management.  Mr. Suresh holds a B. Tech (Mechanical Engineering) degree and a postgraduate degree in Business Administration from IIM Bangalore.

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 450 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.

Allcargo Logistics Share Price Daily Chart
Allcargo Logistics Share Price Daily Chart

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