Business Update: Ritco Logistics Secures Multiple Contracts Worth Rs 14.89 Crore and Expands Operations in February 2025
With a PE ratio of 18.7x, the company trades at a discount compared to the industry PE of 25.5x. The company has ROCE of 17 per cent and ROE of 20.4 per cent.
Ritco Logistics Ltd has achieved a key milestone by securing major transportation contracts worth Rs 14.89 crore in February 2025. The company signed a contract worth Rs 7 crore with Exide Industries Ltd for transporting finished goods nationwide. Additionally, Ritco won a Rs 7.89 crore contract from Varun Beverages Ltd, Jammu, further strengthening its logistics capabilities.
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Expanding its presence in renewable energy, Ritco has begun logistics services for Premier Energies Ltd, a solar cell and module manufacturer in Hyderabad. It has also partnered with Lumino Industries Ltd, Kolkata, a cables and conductors manufacturer, ensuring efficient transportation.
Ritco has customized its fleet for Jindal Steel & Power Ltd, JSW Steel Ltd, and Jindal Stainless Ltd to support their growing logistics needs. The company plans to expand its fleet further to enhance its presence in the steel sector.
The 3PL and warehousing segment has also grown with new partnerships. Ritco secured a long-term contract with Mangalore Refineries & Petrochemicals Ltd for warehousing and 3PL operations in Hyderabad, strengthening its industrial supply chain presence.
With these expansions, Ritco Logistics Ltd continues to reinforce its position as a key player in the logistics sector.
Ritco Logistics Ltd engages in the provision of logistics and transportation business. Its products and services include contract logistics, less than truck load transportation, liquid transportation, warehouse and distribution and fleet management. The company was founded on August 23, 2001 and is headquartered in Gurugram, India.
Ritco Logistics Ltd has a market capitalisation of Rs 802 crore and is currently trading at Rs 283 per share. The stock has reached a 52-week high of Rs 444 and a low of Rs 189 over the past year. The one-year return is 18.23 per cent, and 136 per cent returns in 3 years.
In the Quarterly Results of December 2024, the company reported revenue of Rs 312.93 crore, reflecting a year-on-year growth of 30.98 per cent and a quarter-on-quarter increase of 12.13 per cent. Net profit stood at Rs 13.03 crore, marking a growth of 45.26 per cent compared to December 2023 and 13.80 per cent over the previous quarter. The net profit margin for December 2024 was 4.16 per cent, compared to 4.10 per cent in September 2024 and 3.75 per cent in December 2023.
For the financial year 2024, the company recorded revenue of Rs 931.17 crore, growing by 24.47 per cent from Rs 748.09 crore in FY23. The net profit for FY24 was Rs 42.88 crore, reflecting a growth of 38.68 per cent compared to Rs 30.26 crore in FY23. The net profit margin improved to 3.25 per cent in FY24 from 2.92 per cent in FY23.
With a PE ratio of 18.7x, the company trades at a discount compared to the industry PE of 25.5x. The company has ROCE of 17 per cent and ROE of 20.4 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.