Multibagger Logistics stock alert: This micro-cap company expands cold chain vehicle fleet; Old orders amount to Rs 150 crore from Indian Railways!

This stock has shown an impressive performance by delivering a multibagger return of 173.25 per cent so far this year till date

AVG Logistics Limited, a prominent player in India's logistics sector, is reinforcing its fleet operations with the acquisition of over 50 high-quality cold chain vehicles. These vehicles, formerly owned by a multinational logistics company, have been carefully chosen after a thorough evaluation of their quality, condition, and wear & tear. This move substantially enhances AVG's capabilities, representing a 20 per cent increase in its current cold chain fleet strength and bringing the total to 275+ vehicles. This strategic move is particularly significant as AVG recently secured a long-term contract with India's largest MNC FMCG Company for both dry and frozen goods.

Management Commentary: Sanjay Gupta, Managing Director & CEO, AVG Logistics
Mr. Sanjay Gupta, Managing Director & CEO of AVG Logistics, expressed his enthusiasm about the fleet expansion, emphasizing the meticulous due diligence conducted on the acquired vehicles. He highlighted the vehicles' top-notch quality and attractive terms, indicating their value as a welcome addition to the company. According to Mr. Gupta, this move demonstrates AVG's dedication to meeting the demands of a competitive business environment and underscores the company's commitment to sustained growth.

About AVG Logistics Limited: A Snapshot of Growth and Expertise
Founded in 2010, AVG Logistics Limited has swiftly evolved into a trusted multimodal logistics solutions provider in India. Specializing in road & rail transportation, reefers/cold chain, and warehousing, the company boasts a modern fleet and over 50 fully automated branches nationwide. With a workforce of 400+ dedicated professionals, AVG Logistics serves a diverse clientele, including Nestle, HUL, DS Group, and many other retail and multinational companies. The recent fleet expansion aligns with the company's overarching goal of providing efficient and technology-driven logistics solutions, solidifying its position for continued success in the evolving Indian logistics landscape.

Recently, AVG Logistics Limited has secured a contract on December 5, 2023, valued at Rs 150 crore over 6 years, from Indian Railways for operations of Leased Parcel Express Train. This initiative marks a significant partnership with Indian Railways and underscores the commitment to provide efficient end to end cargo transportation services.

In the recent financial report, the revenue for the first half of the fiscal year 2024 reached Rs 219 crores, marking a 5.2 per cent increase compared to the same period in the previous fiscal year, which was Rs 208 crores in H1FY2023. EBITDA experienced substantial growth, showing a noteworthy 23 per cent year-on-year increase to Rs 40 crores in H1FY2024 from Rs 33 crores in H1FY2023. PBT margins also saw improvement, growing by 270 basis points. PAT for H1FY2024 amounted to Rs 4.23 crores, with PAT margins increasing by 146 basis points compared to the previous year.

This stock has shown an impressive performance by delivering a multibagger return of 173.25 per cent so far this year till date. Investors should keep an eye on this micro-cap Logistics company.

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