Shares of Allcargo Logistics Ltd. gained as much as 14.22% as the company posted strong fourth-quarter results.
The Mumbai-based logistics firm reported a revenue of Rs 3,349.31 crore for the quarter ended March 2021, up 79% from the year-ago period. Net profit was also up 3.19% at Rs. 53.71 crore.
ICICI Securities upgraded its rating on the stock to ‘buy’ and also raised its target price to Rs 189 from Rs 131. It cited the turnaround of Gati Ltd, the express courier firm that Allcargo Logistics acquired in 2020, as rationale for its change. “The management appears to be on the right track in Gati to deliver through divestment of non-core assets and bring about operational improvements to increase ‘express’ segment Ebitda to 12% in the next 3-5 quarters,” it said in a note dated June 24.
Of the eight analysts tracking the stock, five have a ‘buy’ rating, two suggest a ‘hold’ and one recommend a ‘sell’, according to Bloomberg data.