In my view, market likes to see EPS growth before rewarding a stock, no matter how cheap it otherwise appears. Allcargo has been showing YoY EPS decline for past many quarters. Once their Project division gets out of the mess, and once the shipping division is finally revamped, the underlying strong economics of CFS and MTO business would come to the fore. Until then, I would mostly track this stock.
any idea why the stock has been beaten down badly losing almost 25%
Any core changes fundamental , any new key observations ?
Changes in regulation expediting release and delivery of imported containers has raised alarm bells about Allcargo’s container rental business. The new regulation reduces the number of days under which containers have to be released from six to three. This could lead to lower container rental income for operators like Allcargo
Found one interesting post
Yes, but Uber models are hardly profitable for corporations. Tech investment is high, probability of adding revenue to that extent is questionable at least for a couple of years.
ALLCARGO DELISTING PLAY LOOKS VERY VERY INTERESTING. CAN BE A GOOD OPPORTUNITY FOR 25-30% RETURNS TILL RBB STARTS.
AllCargo Logistics mads two announcements
a. Issuance of Bonus Shares: The company’s board has approved the issuance of three bonus shares for each share held by shareholders. This decision aims to increase liquidity and allow more shareholders to participate in the company. It will also support their strategic restructuring plans. Importantly, this will utilize less than 15% of the company’s available reserves. This move follows a recent demerger of two businesses.
b. Financial Results: Apart from reporting financial results, company have been performing well in recent years, despite the recent acquisition of minority shares in Gati Express Supply Chain and Allcargo Supply Chain. The company has taken steps to reduce its debt and has exited non-core businesses. They are now focusing on an asset-light approach and digital strategy for future growth. Although there have been challenges in recent quarters due to the macroeconomic environment, the company believes that its strong balance sheet will support future growth.