The shares of the logistic solution provider gained up to 2 percent after the company received approval to expand its operation for Adani Cement.
With a market capitalization of Rs 215.69 crore, the shares of Kaushalya Logistics Limited were trading at Rs 116.40 per share, increasing around 2.11 percent as compared to the previous closing price of Rs 114 apiece.
Reason for Rise:-
The shares of this company have seen a bullish movement after Adani Cement has approved Kaushalya Logistics Limited’s Clearing and Forwarding (CFA) operations in four critical Haryana locations: Kurukshetra, Kaithal, Fatehabad, and Bhiwani. This expansion will improve the company’s logistical capabilities by improving supply chain operations and assuring faster, more dependable deliveries to customers.
Moreover, as a trusted logistics partner for major cement manufacturers like Dalmia Cement Bharat and Adani Cement, the new depots enhance inventory management, reduce transit times, and improve connectivity. This expansion supports growing demand, boosts market penetration, and strengthens the company’s position in the competitive logistics sector.
Financial Analysis:-
Looking forward to the company’s financials, Kaushalya Logistics Ltd.’s revenue dipped by 46 percent from Rs 879 Crore in FY22-23 to 474 Crore in FY23-24. During the same period, net profits zoomed by 50 percent from Rs 4 crore to Rs 6 crore.
Industry outlook:-
The logistics sector in India is projected to reach an impressive market value of US$ 380 billion by 2025, growing at an annual rate of 10–12%. This growth is driven by the booming e-commerce market, rapid technological advancements, and strategic government initiatives aimed at enhancing infrastructure. The logistics industry stands as a pillar of opportunity, poised for substantial growth in the coming years.
Strategic Initiative:-
Kaushalya Logistics is capitalizing on the increasing demand for logistics services linked to infrastructure development. The company has secured significant contracts, including a Letter of Intent from Adani Cement for a second depot, which will further bolster its capabilities in cement logistics.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 36.61 percent in FY22-23 to 18.74 percent in FY23-24, while the return on capital employed decreased from 25.75 percent to 56.53 percent. The net profit margin (NPM) for fiscal year 23-24 is 0.62 percent.
Company snapshot:-
Kaushalya Logistics Limited began as a construction-focused company in 2007 before diversifying into logistics support for the cement industry. The company expanded its operations, managing 70 warehouses in various Indian states, including Bihar, Tamil Nadu, and Kerala.
Written by:- Abhishek Singh
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