The shares of this microcap company jumped around 6 percent in Monday’s trading session after announcing a major collaboration with Adani Cement.
Price Movement:
With a market capitalization of Rs. 195 crores, the shares of Kaushalya Logistics Ltd (KLL) started Monday’s trading session on a flatter note at Rs. 102 compared to its previous close of Rs. 102.10. During the trading session, the shares hit a high of Rs. 110, gaining around 6 percent and are currently trading at Rs. 107 apiece.
Is Kaushalya Logistics a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced the the commencement of operations at a new cement depot located in Ahmednagar, Maharashtra, starting from August 1, 2024.
The company will handle essential logistics services for Adani Cement, covering rake point operations, depot management, and secondary transportation. This new initiative will benefit both ACC (NS:ACC) and Ambuja Cement brands.
The Ahmednagar depot is expected to handle approximately 1,20,000 metric tons of cement annually. KLL will oversee the complete logistics chain at this facility, encompassing rail movement, depot operations, and the transportation of cement to secondary distribution points.
In addition to this new venture, Kaushalya Logistic is engaged in advanced discussions with Adani Cement for further These discussions are focused on establishing additional depots, indicating a promising growth trajectory for the company.
Additionally, the company also announced its foray into the freight forwarding Load (FTL) services. This initiative is aimed at enhancing the company’s logistics capabilities and meeting the growing demand for efficient transportation solutions.
The new FTL vertical is designed to provide dedicated truckload services, allowing for more efficient and timely delivery of goods. This service is particularly beneficial for clients needing to transport large volumes of products, as it optimizes load capacities and reduces transit times.
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.
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
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