In Monday’s trading session, the shares of one of the leading logistics stocksspecializes in providing comprehensive multimodal logistics solutions jumps upto 5 percent following the acquisition of majority of stake in Kaizen Logistics Ltd.
Price action
With a market capitalization of Rs.546.43 Crores on Monday, the shares of AVG Logistics Limited jumped 5 percent, rising from a day’s low of Rs. 353 to a high of Rs. 375.20.
What Happened
AVG Logistics Limited specializes in providing comprehensive multimodal logistics solutions, with a focus on road and rail transportation, cold chain services, and third-party logistics.
AVG Logistics Limited has announced its plan to acquire a major stake in Kaizen Logistics, a trusted logistics service provider in India. Kaizen Logistics offers services in road transportation, multimodal logistics, and warehousing, serving prominent companies such as Vedanta, Aditya Birla Group, RIL, and Hindustan Zinc.
This acquisition will help AVG Logistics enhance its operational capabilities, expand its customer base, and improve its logistics infrastructure. AVG aims to leverage Kaizen’s expertise in key sectors like FMCG, metals, and chemicals to create long-term value for shareholders, employees, and partners. The acquisition is expected to be completed by the end of FY 2024/25.
About the company
AVG Logistics Limited is a prominent multimodal logistics solutions provider based in India, established in 2010. The company offers a wide range of services, including transportation, warehousing, distribution, and supply chain management. AVG Logistics specializes in road and rail transportation, cold chain solutions, and third-party logistics (3PL), catering to various industries such as FMCG, chemicals, and manufacturing.
AVG Logistics Limited operates with a modern fleet of over 3,000 vehicles and more than 705,000 square feet of warehousing space, ensuring efficient, integrated logistics services across India. The company is known for its technology-driven approach and serves a customer base that includes leading brands such as Nestle, HUL, Godrej, and Coca-Cola.
Financials
The company’s revenue rose by 18.3 percent from Rs 117.97 crore to Rs 139.56 crore in Q2FY24-25. Meanwhile, Net profit grew from Rs 1.72 crores to Rs 5.38 crore during the same period.
Revenue Breakup FY23
In FY23, Average Logistics Ltd. generated 94 percent of its revenue from freight income. Warehousing services contributed the remaining 6 percent. This reflects the company’s heavy reliance on freight for its overall revenue.
Key Financial ratios
AVG Logistics Limited has an Return on Equity (RoE) of 12.59 percent and a Return on Capital Employed (RoCE) of 14.43 percent. Furthermore, the company’s debt-to-equity ratio is 0.76.
Written by Sridhar J
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