3 Bonus Shares Reward: Logistics Stock Soars 12.74% In 1-Day Post New Biz Updates

Logistic solution provider company Allcargo Logistics Ltd shares zoomed 12.74% on March 22, 2024 and rallied 7.08% in last 1-week ever since the company shared its monthly business updates via its BSE filing on March 12, 2024. Last trading price of Allcargo Logistics share on BSE is Rs 72.31 apiece. Earlier in 2023, Allcargo Logistics recommended 3 bonus shares for every 1 share held and fixed January 2 as the record date for bonus issue.

Allcargo Logistics shares witnessed correction of 12.09% in last 2-weeks after SEBI flagged risk of froth in small cap segment in March. The Sebi chief, Madhabi Puri Buch, on Monday reiterated concerns over stretched valuations. Nearly all small cap stocks witnessed sharp decline after the comments. However, Allcargo Logistics shares gave return of 121% in last 3-years. The company has a market capitalisation of Rs 7106.50 crore. Check details below:

Allcargo Logistics Monthly Business Update: According to the exchange filing, "LCL volume for the month of February 2024 witnessed an increase of 7% as compared to February 2023. Considering shorter month and Chinese New Year, Feb volumes are usually lower than Jan and March. In 2023, Feb volume was 14% lower than Jan volumes. However, this year Feb is only 5% lower than January volumes. Overall demand environment has largely remained flat and strong performance in Feb is driven by improved company performance and some delayed shipments due to Red Sea crisis.

Economic projections indicate an improvement in demand in the second half of 2024. The red sea crisis continues to delay shipments and impacts the freight rate environment. A decline in volume was witnessed in Asia Pacific and Americas, while an increase was reported in Middle East and Europe region."

Container utilization continues to remain rangebound over the last one year and it is expected to improve once volumes increase on key trade lanes. 40 feet container usage has increased steadily over last few months driven by focused approach on important routes, and more efficient trade lane management, besides marginal improvement in volumes.

FCL volume for the month of February 2024 was up 5% as compared to February 2023, added the exchange filing of Allcargo.

Allcargo Logistics Shares Performance & Return: The 52-week high price of Allcargo Logistics shares on BSE is Rs 97.70 apiece and 52-week low price is Rs 61.50 apiece, respectively. Allcargo Logistics shares gained 17.58% from its 52-week low prices. Allcargo Logistics shares declined 5% in last 3-months, gave return of over 9% in last 6-months, and offered return of 150% in last 5-years. The scrip gained 277% in last 10-years.

Allcargo Logistics Financial Performance: Allcargo for the quarter ended December 2023 announced its net profit at Rs 3.18 crore, down 95.63% from Rs 72.85 crore in the corresponding quarter of last year. The company declared its net sales at Rs 402.44 crore for December 2023 quarter, down 21.33% from Rs 511.56 crore in the similar quarter of last year. EBITDA of the company stood at Rs 15.65 crore for the quarter under review, down 41.14% from Rs 26.59 crore in December 2022. The EPS came down to Rs 0.03 in December 2023 from Rs 1.15 in December 2022.

Allcargo Logistics Bonus Issue In 2024: According to the regulator filing of the company dated December 20, 2023, the company declared January 2, 2023 as the record date for 3:1 bonus shares. It implies shareholders will be eligible to receive 3 bonus shares for every 1 share held today.

About: It transports cargo across the globe with international supply chain and air freight solutions. The company provides express distribution under Gati Limited and end-to-end contract logistics under Allcargo Supply Chain. As part of the leading Allcargo Group, it creates synergies and collaborates with its group companies for integrated logistics including CFS-ICD under Allcargo Terminals Limited and logistics parks under Transindia Real Estate Limited, according to its official website.

Disclaimer: The stock highlights the shares rally and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.