The logistics industry is essential to the global economy, facilitating the transportation of goods across various sectors and international boundaries. In India, Allcargo Logistics Ltd has established itself as a key participant in this field. The company offers a wide range of logistics services, encompassing multimodal transportation, warehousing, and supply chain management. For investors or individuals interested in the future outlook of Allcargo Logistics Ltd, In this analysis we will deliver an in-depth examination of the company’s performance and Allcargo Logistics Share Price Target.
Overview of Allcargo Logistics
Allcargo Logistics Ltd. stands as a prominent global provider of logistics solutions, delivering a range of services that include freight forwarding, contract logistics, and warehousing. The organization functions through multiple segments, such as:
- Freight Forwarding: Allcargo offers international freight forwarding services, managing the movement of goods through maritime, aerial, and terrestrial means.
- Contract Logistics: The organization additionally offers warehousing and supply chain management services, facilitating the seamless movement of products from the producer to the final consumer.
- Project Logistics: Allcargo specializes in the management of extensive project cargo operations, frequently dealing with heavy and oversized machinery.
- Express Logistics: It provides expedited delivery services, focusing mainly on shipments that require timely arrival.
Given the strategic importance of logistics in the modern economy and Allcargo’s diversified service offerings, the company has a strong foundation for future growth.
Allcargo Logistics Share Price Target for 2025
Forecasting the future share price of any corporation entails a certain level of unpredictability, given the various factors that affect the stock market. Nevertheless, by analyzing Allcargo Logistics’ present market performance, industry outlook, and growth initiatives, it is possible to project a potential share price target for the year 2025.
Current Price ₹ 51/-
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2025 | ₹ 500 – ₹ 550 | ₹ 420 – ₹ 520 | ₹ 350 – ₹ 400 |
| 2030 | ₹ 1000 – ₹ 1200 | ₹ 800 – ₹ 1100 | ₹ 700 – ₹ 900 |
- Bullish Scenario: Should Allcargo Logistics effectively take advantage of the expanding global trade market, government infrastructure projects, and the rising need for logistics services, it is anticipated that the company’s stock will exhibit strong performance. The organization’s dedication to utilizing technology and broadening its international presence may enhance investor confidence. Given these positive circumstances, the share price of Allcargo Logistics could potentially attain a range of ₹ 500 to ₹ 550 by the year 2025.
- Intermediate Situation: In a more favorable context, presuming sustained growth within the logistics and freight forwarding industry, Allcargo Logistics may continue to experience stable demand. Should the company uphold its current strategies and effectively implement its expansion initiatives, the share price could potentially reach ₹420 – ₹520 by 2025, indicating robust performance in the forthcoming years.
- Bearish Scenario: Should the logistics sector encounter obstacles, including a decline in global trade, increasing fuel expenses, or regulatory hurdles, Allcargo’s share price may witness a deceleration in its growth. Nevertheless, if the company successfully navigates these challenges while sustaining profitability, the share price could still exhibit moderate growth, potentially reaching ₹350 – ₹400 by the year 2025.
For further details, click here. www.allcargologistics.com
Company Essentials
- Market Cap : ₹ 5,032.83 Cr.
- Enterprises Value : ₹ 5,534.87 %
- No. of Shares : 98.28 Cr.
- P/E : 162.99
- P/B : 4.29
- Face Value : ₹ 2
- Div. Yiel : 1.95 %
- Book Value (TTM) : ₹ 11.94
- Operating Revenue : ₹ 19.63 Cr.
- Debt : ₹ 521.67 Cr.
- Promoter Holding : 63.37 %
- EPS (TTM) : ₹ 0.31
- Sales of Growth : -39.99 %
- ROE : 17.94 %
- ROCE : 18.11 %
- Profit Growth : 0.17 %
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| Container Corp | 767.95 | 46,790.76 | 3.85 | 37.27 | 20.60 | 10.68 | 14.75 | 5.42 | 17.80 |
| Aegis Logistics | 825.80 | 28,985.58 | 11.57 | 61.51 | 13.42 | 18.08 | 22.88 | 9.73 | 43.35 |
| Zinka Logistics Solu | 501.65 | 8,853.06 | 5.82 | 0 | -9.49 | -116.43 | -32.95 | 29.87 | -62.76 |
| Transport Corp. | 1,084.75 | 8,308.46 | 4.54 | 22.74 | 47.69 | 19.32 | 20.71 | 2.30 | 16.16 |
| TVS Supply Chain Sol | 173.19 | 7,639.82 | 2.94 | 88.25 | 1.96 | 5.75 | 8.08 | 3.94 | 22.41 |
| Allcargo Logistics | 51.21 | 5,032.83 | 4.29 | 162.99 | 0.31 | 17.94 | 18.11 | 3.08 | 84.33 |
| VRL Logistics | 517.70 | 4,528.24 | 4.55 | 53.62 | 9.65 | 9.27 | 16.80 | 1.57 | 10.82 |
| Gateway Distriparks | 80.58 | 4,026.13 | 2.07 | 17.64 | 4.57 | 13.52 | 13.30 | 2.69 | 11.66 |
| TCI Express | 823.25 | 3,159.64 | 4.22 | 27.91 | 29.50 | 20.40 | 26.91 | 2.52 | 18.36 |
| Mahindra Logistics | 375.10 | 2,702.61 | 4.01 | 69.07 | 5.43 | 9.61 | 16.89 | 0.60 | 9.80 |
Quarterly Result (All Figures in Cr.)
| PARTICULARS | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|
| Net Sales | 384.43 | 402.44 | 486.16 | 526.47 | 689.80 |
| Total Expenditure | 362.87 | 394.40 | 488.43 | 509.42 | 672.22 |
| Operating Profit | 21.56 | 8.04 | -2.27 | 17.05 | 17.58 |
| Other Income | 2.39 | 7.61 | 2.36 | 2.45 | 13.08 |
| Interest | 10.33 | 9.79 | 10.89 | 11.67 | 11.95 |
| Depreciation | 4.95 | 4.86 | 5.06 | 3.49 | 3.93 |
| Exceptional Items | 10.13 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 18.80 | 1 | -15.86 | 4.34 | 14.78 |
| Tax | 4.63 | -2.18 | -3.21 | 0.98 | -22.21 |
| Profit After Tax | 14.17 | 3.18 | -12.65 | 3.36 | 36.99 |
| Adjusted EPS (Rs) | 0.14 | 0.03 | -0.13 | 0.03 | 0.38 |
Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 1,619.31 | 1,801.48 | 2,878.97 | 2,721.84 | 1,633.29 |
| Total Expenditure | 1,444.70 | 1,622.51 | 2,802.70 | 2,560.51 | 1,593.12 |
| Operating Profit | 174.61 | 178.97 | 76.27 | 161.33 | 40.17 |
| Other Income | 116.09 | 183.90 | 231.28 | 95.79 | 223.53 |
| Interest | 63.25 | 62.10 | 38.92 | 21.20 | 38.47 |
| Depreciation | 115.05 | 100.59 | 13.54 | 15.83 | 19.15 |
| Exceptional Items | 153.64 | -3.50 | 13.21 | 39.87 | 25.35 |
| Profit Before Tax | 266.04 | 196.68 | 268.30 | 259.96 | 231.43 |
| Tax | 46.29 | 6.86 | 43.94 | 57.33 | 28.45 |
| Net Profit | 219.75 | 191.49 | 224.36 | 202.63 | 202.98 |
| Adjusted EPS (Rs.) | 2.24 | 1.93 | 2.28 | 2.06 | 2.07 |
Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 49.14 | 49.14 | 49.14 | 49.14 | 196.56 |
| Total Reserves | 1,422.79 | 1,567.47 | 1,866.70 | 981.40 | 1,035.17 |
| Borrowings | 450.15 | 251.18 | 315.24 | 136.18 | 239.85 |
| Other N/C liabilities | 17.77 | -8.43 | -21.26 | 12.77 | 0.85 |
| Current liabilities | 897.73 | 1,229.36 | 1,142.57 | 592.74 | 799.98 |
| Total Liabilities | 2,837.58 | 3,088.72 | 3,410.13 | 1,772.23 | 2,272.41 |
| Assets | |||||
| Net Block | 706.10 | 595.91 | 479.03 | 75.33 | 96.14 |
| Capital WIP | 4.47 | 2.30 | 1.98 | 2.07 | 18.20 |
| Intangible WIP | 0.27 | 0.26 | 0.15 | 0 | 0 |
| Investments | 1,100.60 | 1,284.64 | 1,391.81 | 872.21 | 1,463.12 |
| Loans & Advances | 214.60 | 332.65 | 367.74 | 99.74 | 23.49 |
| Other N/C Assets | 1.05 | 1.04 | 114.84 | 24.52 | 0.24 |
| Current Assets | 810.49 | 871.92 | 1,054.58 | 698.36 | 671.22 |
| Total Assets | 2,837.58 | 3,088.72 | 3,410.13 | 1,772.23 | 2,272.41 |
Cash Flows (All Figures are in Crores.)
Cash Flows (All Figures are in Crores.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |||
|---|---|---|---|---|---|---|---|---|
| Profit from operations | 266.04 | 199.25 | 428.28 | 260.67 | 231.43 | |||
| Adjustment | -17.66 | 6.16 | -89.81 | -79.38 | -175.98 | |||
| Changes in Assets & Liabilities | 6.46 | 7.62 | -206.86 | 237.53 | -240.08 | |||
| Tax Paid | -37.82 | -42.76 | -90.91 | -68.32 | 28.19 | |||
| Operating Cash Flow | 217.02 | 170.27 | 40.70 | 350.50 | -156.44 | |||
| Investing Cash Flow | -511.86 | 189.86 | 93.30 | 49.39 | -137.66 | |||
| Financing Cash Flow | 321.29 | -361.85 | -98.74 | -440.50 | 275.45 | |||
| Net Cash Flow | 26.45 | -1.72 | 35.26 | -40.61 | -18.65 |
Corporate Actions (Dividend)
| EX DATE | RECORD DATE | DIVIDEND% | AmountRs. | TYPE |
|---|---|---|---|---|
| 25 Oct 2024 | 26 Oct 2024 | 55 | 1.1 | Interim |
| 17 Sep 2024 | 18 Sep 2024 | 50 | 1 | Final |
| 15 Mar 2023 | 15 Mar 2023 | 162.5 | 3.25 | Interim |
| 24 Mar 2022 | 25 Mar 2022 | 150 | 3 | Interim |
| 22 Mar 2021 | 23 Mar 2021 | 100 | 2 | Interim |
Shareholding Pattern
| Summary | Sep 2024 | Jun 2024 | Mar 2024 | Jan 04, 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 | Jun 2022 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 63.4% | 63.7% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% | 69.9% |
| FII | 11.0% | 10.8% | 10.8% | 11.0% | 11.0% | 10.9% | 10.8% | 10.9% | 10.1% | 9.2% | 9.3% | 9.6% |
| DII | 2.8% | 2.8% | 2.8% | 2.9% | 2.9% | 3.0% | 2.7% | 2.2% | 2.2% | 2.1% | 2.0% | 1.8% |
| Public | 22.9% | 22.7% | 16.4% | 16.2% | 16.2% | 16.2% | 16.6% | 17.0% | 17.8% | 18.7% | 18.7% | 18.7% |
“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”
Key Factors Influencing Allcargo Logistics Share Price
Multiple elements are expected to impact the share price of Allcargo Logistics in the coming years, particularly as the global economy progresses and transforms.
Growth in Global Trade and Logistics Demand
The logistics sector is fundamentally connected to international trade. As economies rebound from the impacts of the COVID-19 pandemic, a rise in global trade activity is anticipated. Allcargo, through its comprehensive freight forwarding services, stands to gain from the heightened demand for the transportation of goods. Additionally, the growth of e-commerce and the increasing necessity for expedited delivery solutions will further enhance the demand for logistics services, particularly in the areas of warehousing and express delivery.
Government Initiatives and Infrastructure Development
The Indian government has initiated several measures to strengthen the logistics infrastructure within the country. The National Logistics Policy (NLP), introduced in 2022, seeks to enhance operational efficiency, lower expenses, and facilitate the smooth transportation of goods. This initiative is anticipated to positively impact the logistics landscape in India, thereby benefiting Allcargo’s operations. Furthermore, the government’s commitment to upgrading roadways, railways, and ports will afford Allcargo improved access to international markets and broaden its range of services.
Technological Advancements and Automation
The logistics sector is experiencing a significant digital transformation characterized by a growing reliance on automation, artificial intelligence, and blockchain technology for tracking, routing, and inventory management. Allcargo’s capacity to incorporate and utilize these advancements may improve its service delivery and operational effectiveness, thereby granting it a competitive advantage in the marketplace. Investing in technology not only boosts profitability but also enhances the customer experience, potentially resulting in heightened demand for the company’s services.
Expanding Global Footprint
Allcargo is consistently broadening its reach in international markets, encompassing Europe, Asia, and North America. Its extensive network of offices and warehouses enables it to effectively meet the demands of multinational corporations and address the supply chain requirements of clients engaged in cross-border operations. The growth of Allcargo’s global presence has the potential to substantially enhance revenue, thereby contributing to an increase in share price.
Strong Financial Performance
The financial stability of a corporation serves as a critical metric for investors. Allcargo Logistics has exhibited a robust history of revenue enhancement, profitability, and strategic growth. Should the company maintain its impressive financial results, characterized by rising revenues and widening profit margins, it is probable that investor confidence will improve, resulting in an increase in its stock price.
Risks to Consider
Allcargo Logistics presents considerable opportunities for growth; however, investors should remain cognizant of certain risks.
- Rising Fuel Costs: The logistics industry is significantly influenced by fluctuations in fuel prices. A substantial increase in fuel expenses could adversely affect the profitability of the company, particularly in its transportation and freight forwarding operations.
- Competition: The logistics sector is characterized by intense competition, featuring a multitude of both domestic and international entities competing for market dominance. This fierce rivalry may constrain Allcargo’s ability to set prices and could have an impact on its profit margins.
- Global Economic Volatility: Geopolitical risks, economic recessions, or disruptions in global supply chains could affect Allcargo’s business, especially its international operations.
- Regulatory Changes: Adverse modifications in regulations related to trade, freight, or logistics may affect Allcargo’s operations, particularly if they obstruct cross-border trade.
Conclusion
Allcargo Logistics is strategically situated to capitalize on the increasing demand for logistics services, particularly due to its varied service portfolio and broadening international presence. The company’s capacity for innovation, market expansion, and technological utilization will be pivotal in shaping its success in the coming years.
With an optimistic outlook for the logistics sector and Allcargo’s strong track record, a share price target of ₹500 – ₹550 by 2025 seems achievable, assuming favorable conditions in the market. However, as with any investment, there are risks, and investors should conduct thorough research and consider their risk appetite before making investment decisions.
It is consistently recommended to seek the advice of a financial advisor for customized guidance that aligns with your individual investment objectives.
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