The Board of Directors of Allcargo Logistics, at its Meeting held on Monday, i.e., 6th of March 2023, approved the declaration pertaining to the Interim Dividend of ₹3.25 per share which is equivalent to 162.5% on a face value of ₹2/- each. The record date has been decided to be 15th March. The dividend yield, in 2022, was reported to be 0.84 percent.
The shares of the company ended flat at Rs 376 levels on Wednesday. To evaluate how the stock has performed in the past 1 year, the gains stand at around 25 percent which is scaling from Rs 302 to the above-mentioned levels. Moving further with a timeframe of 5 years, the stock has gained 136 percent, starting from Rs 160 to the current levels.
Apart from the declaration of the dividend, the plan to acquire a 38.87% stake from its partner ACCI in the contract logistics arm for Rs 145 crore at a valuation of Rs. 373 crores has been authorized by the board of directors of Allcargo Logistics. Post the completion of the transaction, Allcargo Logistics’ stake in the contract logistics business will grow to 100%.
Commenting on the contract logistics acquisition, Shashi Kiran Shetty, Founder & Chairman, of Allcargo Group said, “This important acquisition will offer us management control and facilitate strategic decision-making. This will help us enhance service delivery capabilities to drive growth. The business has witnessed robust growth over the years diversifying into several new industry segments. We can also expect more synergy between contract logistics and express distribution to further strengthen the group’s position in the fast-growing express and contract logistics space.”
Allcargo Logistics is a small-cap company that engages in the courier services industry. Being the leading logistics provider in India, Allcargo Logistics is a well-known solution for supply chain management that offers logistics services in more than 180 nations.
Having a walkthrough of the company’s financials, we can observe that the revenues and net profits have both gone down. Revenues went down from Rs 5,300 crores in Q2 to Rs 4,100 crores in Q3. Net profits saw a downfall from Rs 222 crores in Q2 to Rs 130 crores in Q3.
Written by Amit Madnani
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