Record-high FII stake and zero pledge: Apurva Chamaria, Google's Head of Venture Capital, allotted warrants in this multibagger stock!

Having yielded astronomical returns exceeding 1000 per cent over the past three years

In this insightful piece, we are poised to unveil a stock that not only defies market trends but also emerges as a beacon of resilience amidst volatility. Despite a palpable stumble witnessed on Wednesday's trading session, characterized by a notable downturn in the Nifty 50 index alongside a pronounced sell-off across broader market indices, one particular stock stood unscathed, displaying an extraordinary surge of nearly 13 per cent, thus etching a fresh all-time high.

Enter AVG Logistics Ltd, a preeminent player in the realm of multimodal logistics solutions within India. Established in 2010, the company has swiftly ascended to prominence, earning accolades as a trusted ally for businesses nationwide. Boasting a cadre of seasoned logistics professionals and a state-of-the-art fleet, AVG Logistics prides itself on delivering bespoke, technology-driven solutions spanning transportation, warehousing, distribution, and supply chain management. Notably, the company augments its expansive suite of offerings with Third-Party Logistics Services (3PL), further solidifying its market presence.

Distinguished by its expertise in road and rail transportation, reefers/cold chain logistics, and warehousing, AVG Logistics operates through a network of 50+ fully automated branches across India. Its illustrious clientele comprises esteemed names such as Nestle, HUL, DS Group, Apollo Tyres, JK Tyres, ITC, Airtel, MRF, Jubilant, UltraTech Cement, Coca-Cola, and a myriad of other retail and multinational giants.

In the fiscal third quarter of 2024, the company reported a robust year-on-year revenue growth of 16.87 per cent, amounting to Rs 125.28 crore, accompanied by a staggering 255.56 per cent surge in net profit. Moreover, in a recent strategic move, AVG Logistics has opted for partial divestment from its joint venture NDR AVG Business Park Private Limited, a prominent warehouse project in New Delhi. This decision has resulted in a lucrative transaction, yielding a profit of Rs 15.2 crore for AVG Logistics. Subsequently, the company intends to channelize the proceeds towards bolstering working capital, debt reduction, and fortifying overall profitability and corporate objectives.

Trading at a price-to-earnings ratio of 16.8x, juxtaposed against the industry's PE ratio of 47.3x, AVG Logistics emerges as an attractive investment proposition. Noteworthy is the discernible uptick in foreign portfolio investors' (FPIs)/FIIs holdings, which surged from 4.35 percent to 5.19 per cent in the December 2023 quarter, underscoring growing investor confidence. Additionally, the complete absence of pledged promoter shares, previously pegged at 23.81 per cent in the September 2023 quarter, accentuates the company's robust fundamentals and investor-friendly ethos.

Of particular interest is the recent development wherein Rivigo Founder Gazal S. Kalra and Google Head of Venture Capital Apurva Chamaria were allocated warrants in the company in January of this year, signaling an alignment of vision and bolstering market sentiment.

The stock's remarkable performance underscores its status as a wealth creator, having yielded astronomical returns exceeding 1000 per cent over the past three years. Even within the last year alone, AVG Logistics has delivered multibagger returns of 207 per cent, reaffirming its stature as a compelling investment avenue poised for sustained growth.

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