The shares of the logistic solution provider gained up to 12 percent after the company signed a prestigious letter of intent with McDonald’s to boost retail business.
Kaushalya Logistics Ltd has a market capitalization of Rs 262.20 crore the shares were trading at Rs 141.50 per share, increasing around 7 percent as compared to the previous closing price of Rs 132.50 apiece.
Reason for rise:-
Today, the company shares have seen such a bullish movement after Kaushalya Logistics Ltd signed a prestigious letter of intent with global restaurant giant McDonald’s to boost retail business. This strategic collaboration marks an essential step for the company as it continues to diversify its business portfolio, with a growing emphasis on partnering with global enterprises.
Moreover, this collaboration boosts its real estate portfolio and broadens its income streams. McDonald’s, an internationally famous brand, has entered the market, demonstrating the appeal of KLL’s commercial real estate offers and the company’s ability to attract top-tier clients in high-demand areas.
Additionally, with this new McDonald’s location, KLL enhances its position in the retail and commercial property sectors, paving the way for future retail-focused initiatives. This growth builds on the company’s strong logistics operation, confirming its objective of becoming an integrated, multi-sector corporation.
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Financial Analysis:-
Looking forward to the company’s financials, Kaushalya Logistics Ltd.’s revenue magnified by 10 percent from Rs 530 Crore in FY22-23 to 587 Crore in FY23-24. During the same period, net profits zoomed by 150 percent from Rs 2 crore to Rs 5 crore.
Industry outlook:-
The logistics sector in India is projected to reach an impressive market value of US$ 380 billion by 2025, growing at an annual rate of 10–12%. This growth is driven by the booming e-commerce market, rapid technological advancements, and strategic government initiatives aimed at enhancing infrastructure. The logistics industry stands as a pillar of opportunity, poised for substantial growth in the coming years.
Strategic Initiative:-
Kaushalya Logistics is capitalizing on the increasing demand for logistics services linked to infrastructure development. The company has secured significant contracts, including a Letter of Intent from Adani Cement for a second depot, which will further bolster its capabilities in cement logistics
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 36.61 percent in FY22-23 to 18.74 percent in FY23-24, while the return on capital employed decreased from 25.75 percent to 56.53 percent. The net profit margin (NPM) for fiscal year 23-24 is 0.62 percent.
Company snapshot:-
Kaushalya Logistics Limited began as a construction-focused company in 2007 before diversifying into logistics support for the cement industry. The company expanded its operations, managing 70 warehouses in various Indian states, including Bihar, Tamil Nadu, and Kerala.
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Written by:- Abhishek Singh
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