Penny stock engaged in providing end-to-end solutions in logistics and supply chain jumped 6 percent in the day’s trade after it plans to expand its operations to overseas markets to make optimum utilization of the opportunities available.
At 10:38 a.m the shares of Cargosol Logistics Limited were trading at Rs. 42, up 6.33 percent from its previous day’s close price of Rs. 39.50 and its market capitalization is Rs. 43 Crores.
The board of directors of Cargosol Limited has proposed the establishment of a new office in Thailand to expand its global presence further and capitalize on emerging opportunities in the Southeast Asian market
The new office will serve as a regional hub, enhancing the company’s ability to serve clients in Thailand and the neighboring countries, the proximity to key markets will optimize its supply chain and distribution networks, leading to improved operational efficiency.
Cargosol Logistics Limited is primarily engaged in delivering end-to-end solutions in logistics and supply chains like freight forwarding, air freight, warehousing, distribution, and many more.
The company’s revenue from operations declined 15.1 percent from Rs. 200.39 Crores in FY22 to Rs. 170.13 Crores in FY23, accompanied by profits of Rs. 6.21 Crore to Rs. 4.21 Crore.
It has reported a return on equity (ROE) of 10.91 percent and a return on capital employed (ROCE) of 13.34 percent, it is making decent returns on its equity and capital employed, as its sales and profit declined in the current financial year.
Note: Due to the illiquidity in penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S
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