The shares of this microcap company surged around 17 percent in Friday’s trading session after securing 2 new contracts for Freight Forwarding Services.
Price Movement:
With a market capitalization of Rs. 219 crores, the shares of Kaushalya Logistics Ltd started Friday’s trading session on a higher note at Rs. 107 compared to its previous close of Rs. 104.50. During the trading session, the shares hit a high of Rs. 124, gaining around 17 percent and are currently trading at Rs. 122 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had recently secured two new clients in the freight forwarding segment, Indian Bulls Enterprise Limited and STP Ltd.
Additionally, the company highlighted that this contract marks KLL’s expansion into the logistics of specialized industrial equipment across complex routes.
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Financials:
Looking at the company’s financial performance, the revenue zoomed by 135 percent from Rs. 625 crores during FY22-23 to Rs. 1,466 crores in FY23-24. In addition, the net profits increased by around 29 percent from Rs. 7 crores to Rs. 9 crores during the same period.
Recent Development:
The company had previously announced its entry into freight forwarding with a focus on Full Truckload (FTL) services. This move is intended to boost the company’s logistics capabilities and address the increasing need for effective transportation solutions.
The new FTL division aims to offer dedicated truckload services, ensuring more efficient and timely delivery of goods. It is especially advantageous for clients requiring the transport of large volumes, as it optimizes load capacities and shortens transit times.
Furthermore, the company had also received a LoI from Adani Cement to establish its second depot for Adani Cement, in Binagudi, West Bengal.
The company will oversee rake operations, depot management, and secondary transportation at this new location. This new facility is expected to handle approximately 50,000 tons per Annum.
Moreover, Kaushalya Logistics is in advanced negotiations to establish additional depots with Adani Cement, JK Cement, and Dalmia Cement, reinforcing its reputation as a trusted logistics provider in the cement sector.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.73 percent and a return on capital employed (RoCE) of 20.04 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 0.62 percent.
Company Profile:
Founded in 2007, Kaushalya Logistics Limited provides clearing and forwarding services to a leading cement company in India. The company provides a range of services including primary and secondary transportation, warehousing, and clearing and forwarding (C&F) services, primarily catering to the cement industry.
Written By Vaibhav Patil
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