2,777% Returns In 3 Yrs, Multibagger Stock Sets Record Date For 2:1 Bonus Shares

Lancer Container Lines Ltd is a small cap logistics company that recorded a market cap of Rs 1,377.49 Cr during Friday's closing session. One of India's top providers of shipping and logistics services is the company. The corporation has declared bonus shares in a 2:1 ratio with a finalised record date.

"In terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, as amended, we have to inform you that Lancer Container Lines Limited. ("the Company") has fixed the Record date as Saturday, 23rd September, 2023 in order to determine the number of shareholders entitled for Bonus Equity shares in the ratio of 2:1 (i.e., Two Equity Shares of Rs. 5/- each Sully paid up for every One Equity Share of Rs. 5/- each fully paid up held as on the record date decided for this purpose)," said Lancer Container Lines in a stock exchange filing on Friday.

From Rs 2,316.79 Mn in Q1 FY23 to Rs 1,642.54 Mn in Q1 FY24, revenue from operations of Lancer Container Lines declined by 29.10%, principally due to a reduction in international freight rates. According to the firm, Q1 FY24 EBITDA climbed by 34.49% YoY from Rs. 281.29 million in Q1 FY23 to Rs. 209.16 million, and Q1 FY24 EBITDA margins expanded by 810 bps to 17.13% from 9.03%. According to the company, PAT jumped to Rs 141.20 Mn in Q1 FY24 from Rs 132.90 Mn in Q1 FY23, while margins increased by 286 bps from 5.74% to 8.60%.

"Lancer's board has considered, approved and recommended a 2:1 bonus issue of fully paid up equity shares with face value Rs. 5/ each and for the same company is increasing its authorised share capital from 50 Cr to 150 cr, subject to requisite approval from shareholders in upcoming AGM scheduled on 11t September 2023. The record date for the Bonus has been decided as, 23" September 2023," said the company in a stock exchange filing.

The management anticipates a 35%-40% rise in revenue for FY24, mostly due to its growing global presence, the acquisition of new TEUs, the inclusion of new clients, and an aggressive sales approach. By the end of FY24, the management anticipates deploying 20,000 TEUs. "EBITDA margin will improve by 100 bps from FY23 due to large operational efficiency and volume commitment with vessel operators to negotiate on slot charges which is the major component of operational cost," said Lancer Container Lines in a stock exchange filing.

Commenting on the Q1 performance, the management team of Lancer Container Lines Ltd, stated "During this period, we continued to expand and excel in the dynamic and growing industry by delivering customized shipping solutions to a diverse range of customers across India and globally. In line with our expansion strategy, we have increased our container capacity to 14,571 TEUs, a significant growth from the previous capacity of 14,435 TEUs as of 31st March 2023. Further in order to boost our capabilities and service offerings we have given orders for 20 foot & 40 HC brand new containers from Lancia to cater to middle east, middle east, Africa and Medliterranean region. This reflects our commitment to meeting the rising demands of our customers and further solidifying our strong position within the industry. This expanded capacity has not only strengthened our bargaining power but has also paved the way for our entry into new markets, aligning seamlessly with our mission to extend our global footprint."

"We are embarking on a strategic partnership with Dubai-based companies to enhance vessel operations services through Lancia Shipping LLC, a wholly owned subsidiary of Lancer. We are also expanding our presence in Dubai by acquiring companies which is into freight forwarding and liner operations. Furthermore, we are strengthening our operations by introducing 1SO Tank container division, providing a convenient solution for transporting wide range of liquid cargo, food grade liquids like oil, Juices, wines and non-hazardous chemicals in safe and secure manner across different countries. This strategic expansion will aid us diversifying our overall product mix, superior margins and provide us better revenue visibility," the management further added.

"Amidst the current economic landscape, the Asia-Pacific region is witnessing a robust growth in trades. Although the Indian market faced a contraction of ~10% in exports during Q1 FY24, we maintain optimism about long-term prospects. This positivity stems from various government initiatives aimed at bolstering shipping logistics as well as "China plus one" trend, which enables Indian manufacturers to explore new opportunities in European and American markets further positively impacting international trades. As we strategically plan our role, we aspire to be a pivotal player in meeting the upcoming logistics demand," the management commented.

"As we move forward, we are committed to further expanding our reach, enhancing customer experiences, and contributing to the growth and development of the shipping industry both in India and on the global stage. Our team's dedication and the unwavering support of our customers have been the key drivers of our success, and we look forward to continued growth and prosperity in the coming quarters," the management of Lancer Container Lines stated in a stock exchange filing.

On Friday, the shares of Lancer Container Lines closed on the BSE at Rs 218.15 apiece up by 2.80% from the previous close of Rs 212.20. The stock made a 52-week-high of Rs 258.98 on (16/11/2022) and a 52-week-low of Rs 117.58 on (23/08/2022). In the last 5 years, the stock has given a massive multibagger return of 2,707.59% and in the last 3 years, it has generated a multibagger return of 2,776.70%. In the last 1 year, the stock has gained 66.85% but on a YTD basis, the scrip has fallen 3.49% so far in 2023.