Micro-cap stock engaged in providing logistics services hit the 5 percent upper price band reaching Rs.40 per share, following a 140 percent increase in revenues year-on-year.
Price Movement
In Wednesday’s trading session, the share price of Tiger Logistics Ltd reached a 5 percent upper circuit limit of Rs.40 per share, from its previous closing price of Rs.38.1 apiece. Over the past five years, the stock has delivered impressive returns exceeding 450 percent.
Rationale for the Rise
The significant rise in Tiger Logistics Ltd stock price can be attributed to notable increases in both net profits and operational revenue, as per their BSE filings.
Tiger Logistics Ltd, with a market capitalization of Rs.421 crores, reported revenue from operations of Rs.101.16 crores for the quarter ending June 2024. This marks a remarkable 141 percent increase from Rs.42.02 crores in the same quarter last year and a 9 percent rise from Rs.92.71 crores in Q4 FY24.
The company also saw a remarkable 120 percent year-over-year increase in Profit After Tax (PAT), reaching Rs.4.63 crores in Q1 FY25, up from Rs.2.1 crores in the June 2023 quarter. On a quarter-on-quarter basis, PAT increased by 15 percent from Rs.4.03 crores in Q4 FY24.
Tiger Logistics Ltd has demonstrated robust financial health with a Return on Capital Employed (ROCE) of 14.63 percent and a Return on Equity (ROE) of 11.7 percent. EBITDA stands at Rs.6.77 crore in June 2024 up 127.95 percent from Rs.2.97 crore in June 2023.
Additionally, the company has a price-to-earnings ratio of 30.98, which is lower than the industry average of 39.54. Tiger Logistics also showcases strong liquidity, evidenced by a current ratio of 6.88 and a debt-to-equity ratio of 0.11.
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International Footprint and Major Clients
Tiger Logistics Ltd has an international presence across all major continents, with agents in the US, Europe, the Middle East, Africa and Asia.
The company has a reputed client base including CEAT, HUL, BHEL, ABB, United Nations, DRDO, Honda, Bajaj, and many more.
Strategic Developments
As part of its strategic initiatives, Tiger Logistics announced the launch of FreightJar 2.0 in the quarter Q4 of FY24. This upgraded freight booking and management platform streamlines import shipments, including Full Container Load (FCL), Less than Container Load (LCL), and Air Freight.
Since its inception, FreightJar has boarded over 500 exporters from various sectors. The new version is integrated with core technology and available for immediate use by exporters and importers in India, and over 5,000 agents worldwide, particularly in the US, Asia-Pacific, Europe, Latin America, and Middle East markets.
Segmental Revenue Mix
Tiger Logistics Ltd operates across three key business segments: Customs House Agent (CHA), Transportation, and Multi-modal segment. The company generated approximately 93 percent of its revenue from the Multi-modal segment, 4 percent from CHA segment, and 3 percent from its Transportation segment.
Company Profile
Tiger Logistics (India) Limited provides inbound and outbound logistics solutions in India and internationally. It offers air and ocean freight forwarding project logistics; climate-controlled cold chain transportation, warehousing, and shipping; customs clearance; and supply chain financing services. It serves automotive, engineering, yarns, textiles, pharmaceutical, commodities, FMCG, and other industries.
Written by – Siddesh S Raskar
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