The shares of this microcap company surged around 6 percent in Friday’s trading session after announcing a partnership with IPSCOM Pte Ltd, a multinational corporation specializing in supply chain solutions.
Price Movement:
With a market capitalization of Rs. 258 crores, the shares of Kaushalya Logistics Ltd started Friday’s trading session on a flatter note at Rs. 134.40 compared to its previous close of Rs. 134.15. During the trading session, the shares hit a high of Rs. 142.50, gaining around 6 percent and are currently trading at Rs. 138 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced a partnership with IPSCOM Pte Ltd, a multinational corporation specializing in supply chain solutions to provide comprehensive logistics and freight forwarding services.
Furthermore, the company highlighted that this strategic partnership substantially enhances Kaushalya Logistics’ client base, further solidifying its status as a premier provider of high-quality logistics solutions.
Financials:
Looking at the company’s financial performance, the revenue zoomed by 135 percent from Rs. 625 crores during FY22-23 to Rs. 1,466 crores in FY23-24. In addition, the net profits increased by around 29 percent from Rs. 7 crores to Rs. 9 crores during the same period.
Recent Development:
The company recently acquired two new clients in the freight forwarding sector: Indian Bulls Enterprise Limited and STP Ltd. Furthermore, this contract signifies KLL’s expansion into the logistics of specialized industrial equipment, covering complex routes.
Additionally, the company had also received a LoI from Adani Cement to establish its second depot for Adani Cement, in Binagudi, West Bengal.
The company will oversee rake operations, depot management, and secondary transportation at this new location. This new facility is expected to handle approximately 50,000 tons per Annum.
Moreover, Kaushalya Logistics is in advanced negotiations to establish additional depots with Adani Cement, JK Cement, and Dalmia Cement, reinforcing its reputation as a trusted logistics provider in the cement sector.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.73 percent and a return on capital employed (RoCE) of 20.04 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 0.62 percent.
Company Profile:
Founded in 2007, Kaushalya Logistics Limited provides clearing and forwarding services to a leading cement company in India. The company provides a range of services including primary and secondary transportation, warehousing, and clearing and forwarding (C&F) services, primarily catering to the cement industry.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
