Cement Logistics Company Expands into West Bengal & Receives Order for Second Depot from Adani Group

The shares of the company have an ROE of 47 per cent and an ROCE of 28 per cent.

Kaushalya Logistics Limited (KLL) has significantly expanded its operations by securing a Letter of Intent (LOI) from Adani Cement to establish a second depot in Binagudi, West Bengal. This new facility will handle approximately 50,000 tons of cement annually, with KLL overseeing rake operations, depot management, and secondary transportation. This development solidifies KLL's position as a crucial logistics partner for Adani Cement and marks a strategic step in the company's expansion across India. With ongoing negotiations for additional depots with Adani Cement, JK Cement, and Dalmia Cement, KLL is poised for substantial growth as it strengthens its national presence and enhances operational capabilities to deliver superior logistics services within the cement sector.

Earlier, the company enters into the freight forwarding vertical under Full Truck Load (FTL) services. This strategic move marks a significant milestone for the company as it expands its service offerings and strengthens its position as an integrated logistics provider. The new FTL vertical will initially focus on serving two major customers: VMS Equipment Pvt Ltd, a group company of ACE, and Epicu Beverages Pvt Ltd, a bottler for Parle Agro. With ambitious plans for rapid expansion and active discussions with multiple potential clients, Kaushalya Logistics aims to leverage its extensive industry experience and operational expertise to offer efficient and reliable FTL services, meeting the growing demands of the freight forwarding market.

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.

On Tuesday, shares of Kaushalya Logistics gained 0.71 per cent to an intraday high of Rs 107 per share from its previous closing of Rs 106.25. The stock’s 52-week high is Rs 128.9 and its 52-week low is Rs 78. 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. 

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