One of the leading multimodal logistics solutions providers, engaged in providing customized and technology-driven solutions across transportation, warehousing, distribution, and supply chain management jumped 8 percent in the day’s trade upon securing a tender worth Rs. 60 Crores from Uttar Pradesh State Road Transport Corporation (UPSRTC).
Price Action
With a market capitalization of Rs. 668 Crores, the shares of AVG Logistics Limited were trading at Rs. 488.55 per equity share, up 3.67 percent from its previous day’s close price of Rs. 471.25.
What Happened
AVG Logistics Limited has been awarded a tender by Uttar Pradesh State Road Transport Corporation (UPSRTC) to act as the authorized partner for Express parcel services. As the authorized partner, AVG Logistics Limited will be responsible for managing and optimizing Express parcel operations, ensuring sustainable, timely, and reliable delivery for customers across the designated regions in the state of Uttar Pradesh.
As per terms, AVG Logistics Limited has secured space in 9,000 UPSRTC buses for Express parcel delivery services and expects a lifetime revenue of Rs. 60 Crores over 5 years.
This collaboration with UPSRTC will enable AVG to leverage the extensive bus network for efficient and wide-reaching Express parcel distribution, covering urban and rural areas in the state of Uttar Pradesh, aimed at enhancing the efficiency and reach of Express parcel delivery services.
About the Company
AVG Logistics Limited is one of the leading multimodal logistics solutions providers, engaged in providing customized and technology-driven solutions across transportation, warehousing, distribution, and supply chain management with over 50+ fully automated branches, 3000+ fleet of hired & owned vehicles along with 705,000 Sq. Ft. of warehousing space across India.
It has a strong clientele base with some well-known players including Nestle, HUL, Airtel, MRF, Jubilant, Apollo Tyres, JK Tyres, ITC, UltraTech Cement, Coca Cola & many other retail and multinational companies.
Financials and Ratios
Its revenue from operations grew by 12.33 percent from Rs. 427 Crores in FY23 to Rs. 480 Crores in FY24, accompanied by profits of Rs. 8 Crores to Rs. 33 Crores
In terms of Return ratios, it has reported a return on equity(ROE) of 15.1 percent and a return on capital employed (ROCE) of 14.6 percent. It has reported a debt-to-equity ratio of 1.10.
Written by: Bharath K.S
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