On Wednesday, the share price of the microcap company rose 3.2 percent to its intraday high of Rs 345 from its previous close of Rs 334.1 after the Company acquired a fleet of more than 50 Cold Chain vehicles.
According to the filing, AVG Logistics Ltd, a leading multimodal logistics solutions provider in India, is strengthening its fleet operations by acquiring more than 50 fleets of cold chain vehicles to enhance its cold chain capabilities.
This acquisition strengthens the company’s ability to service a recently signed long-term contract with India’s largest MNC FMCG Company in both dry and frozen goods. With this fleet, AVG Logistics now has more than 275 vehicles in its cold chain, accounting for 20 percent of that strength.
Looking at the AVG Logistics Limited financials, the net revenue increased by 6 percent year over year, from Rs 110.88 crore in Q2FY23 to Rs 117.43 crore in Q2FY24. Their revenue rose by 17 percent sequentially from Rs 100.34 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 91 percent year over year, from Rs 0.90 crores in Q2FY23 to Rs 1.72 crores in Q2FY24. On a sequential basis, their profit decreased by 32 percent from Rs 2.53 crore in Q1FY24 to the current levels.
AVG Logistics Limited is a microcap company with a market capitalization of Rs 400 crores. The share price of the company has risen by 30 percent in six months and 186 percent in the year to date. For instance, if an investor invested Rs 1 lakh a year ago the current value of the investment would be 2.86 lakhs.
In comparison to its peers, the company has a low price-to-earnings ratio of 46, and it has increased its return on equity by 9 percent, with a return on capital employed that is 21 percent higher than the previous two years.
The promoter of the company owns 61.3 percent of the company, while the general public owns 26 percent, foreign institutional investors own 4.3 percent, and domestic institutional investors own 8.4 percent.
AVG Logistics Ltd, founded in 2010, offers road transportation, warehousing, and railway transportation to a variety of domestic and multinational companies.
Written by Sriram KV
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