In Thursday’s morning trading session, the share price of a company engaged in the Transportation & Logistics Business jumped by 6.8 percent on BSE to hit an intraday high at Rs. 55.5, after the Ministry of Corporate Affairs approved the incorporation of its wholly-owned subsidiary.
At 11:00 a.m., the shares of Orissa Bengal Carrier Limited (OBCL) were trading in the green at Rs. 55.06, up by nearly 6 percent, compared to its previous closing price of Rs. 51.97, and has a market cap of Rs. 116 crore.
The Ministry of Corporate Affairs (MCA) has approved the incorporation of a direct wholly-owned subsidiary of OBCL under the name “OBCL Ventures Private Limited”, and the cost of acquisition is Rs. 1 lakh, as per the latest regulatory filings with the stock exchanges.
The primary goal of the newly incorporated company is to carry out various trading activities, and the acquisition will support the company in the diversification and expansion of the current business operations of OBCL.
Additionally, the company can also use its existing logistics framework for various trading activities.
Earlier on 29th April, OBCL accepted a Letter of Intent (LOI) and entered into a contract for the transportation of nearly 1.8 lakh Metric Tons of materials of Ambuja Cement Limited.
On a quarterly basis, the company’s revenue from operations stood at Rs. 71.7 crore in Q4 FY23-24, falling by 22.3 percent from Rs. 92.3 crore in Q3 FY23-24, while the PAT declined from a profit of Rs. 1.6 crore in Q3 FY23-24 to a loss of Rs. 1.92 crore in Q4 FY23-24.
The return on equity (ROE) stood at 4.12 percent in FY23-24, down from 4.28 percent in FY22-23, as well as a fall in the Return on Capital Employed (ROCE) from 7.34 percent in FY22-23 to 6.88 percent in FY23-24.
OBCL’s shares have delivered positive returns of about 7 percent in one year. However, the stock has given negative returns of around 14.7 percent in the last six months.
As per the shareholding pattern of March 2024, the Promoters hold a 67.23 percent stake in the company, Foreign Institutional Investors hold a 0.06 percent stake, and Retail Investors hold a 32.71 percent stake in OBCL.
Orissa Bengal Carrier Limited is engaged in providing services including Full Truck Load Transport Services, Parcel and Part Truck Load Services or less than Truck Load (LTL). It serves a broad range of industries, including steel, coal, aluminium, cement, petrochemicals, paper, marble, tiles, infra, textile, and FMCG.
Written by Shivani Singh
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