Cement Logistics Company Secures FTL Contract with Uttarakhand Seeds & Tarai Development Corporation, Expands into Agricultural Logistics
The shares of the company have an ROE of 47 per cent and an ROCE of 28 per cent.
Kaushalya Logistics Limited (NSE: KLL), a diversified conglomerate specializing in logistic support to the cement players, has secured a Full Truck Load transportation contract with Uttarakhand Seeds and Tarai Development Corporation Limited (UKS & TDC). This agreement marks KLL’s strategic entry into new sectors, PSUs and agricultural logistics, emphasizing the company's expansion into specialized markets. The contract involves transporting high-quality seeds from Uttarakhand to major agricultural hubs, including Bihar, Uttar Pradesh and West Bengal. UKS & TDC is a prominent PSU dedicated to enhancing crop productivity and supporting farmers by providing quality seeds. By collaborating with UKS & TDC, KLL not only diversifies its service portfolio but also underscores its adaptability and vision for long-term growth. The contract spans one year, with an option for a 3-month extension, reflecting the potential for extended collaboration.
This move expands KLL’s focus beyond its core expertise in cement logistics, showcasing its commitment to diversification and strategic growth. Agriculture, a cornerstone of India's economy, offers strong demand backed by government support, making it an essential sector for logistics services. Entering this segment, particularly through a partnership with a key PSU, signifies KLL's ability to manage specialized logistics needs. This contract sets the foundation for future collaborations with agribusinesses and other government entities.
For KLL, the partnership brings multiple advantages, including revenue diversification through agriculture-focused logistics, steady cash flow and enhanced credibility in handling specialized FTL requirements. By entering the food sector and strengthening ties with PSUs, KLL positions itself as a versatile and integrated logistics provider. The collaboration with UKS & TDC is a testament to KLL’s strategic growth ambitions, laying the groundwork for expansion across various industries.
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About Kaushalya Logistics Limited
Kaushalya Logistics Limited, formerly a construction company, transformed its business in 2010 to provide logistic support exclusively to the cement industry. Now a prominent player with a pan-India presence, it serves Dalmia Cement Bharat Limited across 70 locations and boasts a strong online marketplace presence. Beyond core logistics, the company has ventured into commercial real estate. With a robust financial performance, registering Rs 1,47,832.91 lakh in total revenue, Rs 1,951.73 lakh in EBITDA and Rs 910.29 lakh in net profit for FY24, Kaushalya Logistics aims to expand its service offerings and geographical footprint, positioning itself as a comprehensive logistics and C&F solutions provider.
The stock is up by 50 per cent from its 52-week low of Rs 78 per share. The shares of the company have an ROE of 47 per cent and an ROCE of 28 per cent. Investors should keep an eye on this cement logistics stock.
Disclaimer: The article is for informational purposes only and not investment advice.