Tata Mutual Fund-Backed Logistic Stock Okays 3:1 Bonus Shares: Do You Own?

A small-cap company in the transport services industry is Allcargo Logistics. Top logistics provider in India, Allcargo Logistics offers supply chain management solutions in more than 180 countries and is a one-stop shop for logistics services. Allcargo Logistics' shares were up 3.27% at Rs 281.20 on Thursday following the company's announcement of bonus shares in a 3:1 ratio.

Allcargo Logistics News

"In furtherance of the outcome of Board Meeting held on November 10, 2023 and in accordance with Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations"), we wish to inform you that the Board of Directors of the Company has fixed Tuesday, January 2, 2024 as the Record Date for the purpose of ascertaining the eligibility of shareholders for allotment of bonus shares in the proportion of 3:1 i.e. 3 (Three) new equity shares of Rs 2/- (Rupees Two) each for every 1(One) existing equity share of Rs 2/- (Rupees Two) each held by the shareholders of the Company, subject to the approval of shareholders by way of postal ballot through e-voting process," said Allcargo Logistics in a stock exchange filing.

Allcargo Logistics Financials

The company's net sales for the September 2023 quarter were Rs. 384.43 crore, down 60.88% from the September 2022 quarter's Rs. 982.75 crore. Its net profit for Q2FY24 was Rs. 14.17 crore, down 85.5% from Q2FY23's Rs. 97.71 crore. Its EBITDA reached Rs. 23.95 crore in Q2FY24 down 86.31% from Rs. 174.89 crore from the same quarter of the previous fiscal.

Allcargo Logistics Shareholding

During Q2FY24, the company booked promoters' shareholding of 69.91%, FIIs stake of 10.87%, DIIs stake of 2.97% and public stake of 16.24%. As per the shareholding pattern of Allcargo Logistics for the July to September 2023 quarter, Tata Mutual Fund - Tata Small Cap Fund held 42,78,242 shares of the company or 1.74% stake whereas ace investor Mukul Mahavir Agrawal held 33,00,000 shares or 1.34% stake in Allcargo Logistics.

Allcargo Logistics Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "Allcargo Logistics Limited (ALLCARGO), presently trading at Rs 127.5, has recently experienced a breakout of the daily trendline accompanied by substantial trading volume. The current price reflects robust bullish momentum, with expectations of a continued upward movement towards the Rs 324 level. Conversely, there is formidable support noted near Rs 258. Moreover, ALLCARGO is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 52.5, showing an upward trajectory and indicating increasing buying momentum."

"Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that ALLCARGO may have the potential to reach a target price of Rs 324 in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 258 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of Rs 270. Overall, considering the technical analysis and current market conditions, ALLCARGO presents a promising buying opportunity for those aiming for a Rs 324 price target, provided that prudent risk management measures are in place," the analyst further added.

Disclaimer

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