Allcargo Logistics Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 5503.58 Crore) operating in Logistics sector.
Allcargo Logistics Ltd. key Products/Revenue Segments include Mutimodal Transport Operations, Container Freight Station, Other Services and Other Operating Revenue for the year ending 31-Mar-2020.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3459.14 Crore, up 2.95 % from last quarter Total Income of Rs 3360.07 Crore and up 65.22 % from last year same quarter Total Income of Rs 2093.61 Crore. Company reported net profit after tax of Rs 97.01 Crore in latest quarter.
Investment Rationale
Allcargo Logistics’ (AGLL) posted an impressive Q1FY22 EBITDA of Rs2.17bn (I- Sec Rs1.56bn). The brokerage downgrades AGLL to ADD from BUY with a revised target of Rs233 (Rs189 earlier). Turnaround in Gati (subsidiary of AGLL) operations can accrue significant value to AGLL. The management appears to be on the right track in Gati to i) delever through divestment of non-core assets and ii) bring about operational improvements to increase ‘express’ segment EBITDA to 12% in the next 2-4 quarters. MTO business earnings continue to surprise, with a 39%YoY volume growth coupled with expansion in EBIT margins (QoQ). This leads to significant upgrade in earnings. Rs1.2bn (enterprise value) purchase of speedy CFS can lead to improvement in CFS earnings going forward.
Promoter/FII Holdings
Promoters held 70 per cent stake in the company as of June 30, 2021, while FIIs held 12.9 per cent, DIIs 2.9 per cent and public and others 14.3 per cent.
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