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 2 percent in the day’s trade upon receiving work order worth Rs. 90 Crores from one of the leading cement companies.
Price Action
With a market capitalization of Rs. 566 Crores, the shares of AVG Logistics Limited were trading at Rs. 414.60 per equity share, down 0.52 percent from its previous day’s close price of Rs. 416.75.
What Happened
AVG Logistics Limited one of the leading multimodal logistics solutions providers has secured a new work order for a consideration of ~Rs. 90 crores over a period of 3 years, from one of the most renowned cement companies in India.
By leveraging its extensive experience in managing complex logistics networks, AVG is poised to deliver tailored solutions that can address the unique challenges of the cement supply chain from raw material transportation to finished product delivery by optimizing and streamlining the logistics operations of the cement company, contributing to both operational efficiency and sustainable growth
This work order marks the company’s entry into the rapidly growing cement industry, which will be initiated in a phased manner. Cement being one of the most essential sectors in India’s construction and infrastructure growth, the deal would help and position AVG to expand its horizons into the cement industry.
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.
AVG Logistics Limited 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 & Ratios
Its revenue from operations grew by 18.3 percent from Rs. 117.97 Crores in Q2FY24 to Rs. 139.56 Crores in Q2FY25, accompanied by profits of Rs. 1.72 Crores to Rs. 5.38 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 12.59 percent, and a return on capital employed (ROCE) of 14.43 percent. It has reported a debt-to-equity ratio of
Written by: Bharath K.S
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