Logistics stock saw heavy buying as the company reports stellar results; PAT zooms 22 per cent to Rs 1.67 crore!

The shares of the company have a PE of 25x whereas the industry PE is 38x.

Today, the stock market is trading in red with BSE Sensex Index and NSE Nifty-50 Index down over 0.60 per cent each. Though the market was in red, one stock from the logistics sector, PATEL INTEGRATED LOGISTICS LTD surged 5.47 per cent to an intraday high of Rs 22.75 per share from its previous closing of Rs 21.57 per share. The shares of the company saw a spurt in volume by more than 1.2 times on BSE.

The sudden rise in the stock price was due to the company announcing stellar Quarterly Results (Q4FY24) and annual results (FY24) for the financial year 2023 – 2024.

According to quarterly results, total gross income from operations increased by 33.6 per cent to Rs 101.30 crore, net sales increased by 33.8 per cent to Rs 85.85 crore, profit before tax increased by 63.6 per cent to Rs 1.80 crore and net profit increased by 22 per cent to Rs 1.67 crore in Q4FY24 compared to Q4FY23. Increase in sales volume YoY 21 per cent to 15,276 tons from 12,590 tons and QoQ 1 per cent to 15,276 tons from 15,115 tons.

In its annual results, total gross income from operations increased by 6.7 per cent to Rs 342.37 crore, net sales increased by 4.4 per cent to Rs 290.55 crore, profit before tax increased by 22 per cent to Rs 5.68 crore and net profit increased by 13.1 per cent to Rs 5.54 crore in FY24 compared to FY23.

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The management added that despite global hurdles like the Red Sea crisis and geopolitical tensions, the Indian economy has shown remarkable strength, and the logistics sector is set for exponential growth. This is driven by a combination of factors. The government's ambitious plan to increase the number of airports to 240 by 2030, coupled with our company's initiatives, has led to year-on-year growth in both turnover and profit margins. Furthermore, the Airports Authority of India's planned investment of Rs 30,000 crore over five years and the government's target of operationalizing 1,000 new UDAN routes will open new doors for logistics expansion. The aviation sector's rapid growth, exemplified by the launch of commercial operations by new airlines like FLY91 and the expansion of Indian Airlines' fleet, will be a key driver for the logistics sector in FY25, which is expected to see double-digit growth.

Incorporated in 1962, Patel Integrated Logistics Ltd. is a pioneer in multimodal logistics solutions in India. PATEL is a trusted name in the world of logistics. The company is a leading IATA-approved cargo agency offering transportation of high-density cargo by air and surface within India. It covers all airports across the country and offers specialized services in both domestic and international logistics.

The company has a market cap of Rs 142 crore. The shares of the company have a PE of 25x whereas the industry PE is 38x. The stock is up by 86.3 per cent from its 52-week low of Rs 12.21 per share. Investors should keep an eye on this logistics stock.

Disclaimer: The article is for informational purposes only and not investment advice.