Cement Penny Stock Under Rs 100 In Focus As Company Strengthens Network with New Depot at Varanasi for Adani Cement Group

Kiran Shroff
Cement Penny Stock Under Rs 100 In Focus As Company Strengthens Network with New Depot at Varanasi for Adani Cement Group

The shares of the company have an ROE of 26 per cent and an ROCE of 21 per cent.

Kaushalya Logistics Limited (NSE: KLL), a diversified logistics conglomerate specializing in cement industry support, has expanded its network with a new depot in Varanasi, Uttar Pradesh. This depot will serve ACC, part of the Adani Cement Group, and marks a significant step in Kaushalya's strategic growth plan. The Varanasi location, operating under the CCFA model, is Kaushalya's sixth such location and eighth CCFA depot, demonstrating its commitment to providing optimized logistics solutions to partners.

The Varanasi depot is projected to handle over 20,000 metric tons of cement monthly, facilitating timely deliveries and efficient inventory management. This expansion comes at a crucial time for the cement industry, which is experiencing strong demand growth, making seamless distribution essential. Kaushalya Logistics' focus on expanding its depot network allows cement manufacturers to benefit from faster turnaround times, improved inventory management, and cost-effective supply chain operations. Their dedication to automation, digital tracking, and operational excellence enables them to provide comprehensive logistics support tailored to the industry's evolving needs.

This Varanasi depot is part of Kaushalya Logistics' aggressive expansion strategy, which has seen the company launch 19 new depots in the 2024-25 fiscal year alone. This brings their total depot count to 93, significantly strengthening their market presence and solidifying their position as a preferred logistics partner for major cement manufacturers.

Additionally, the company received the MSME Ratna Award from the Chamber of Indian Micro, Small, and Medium Enterprises (CIMSME) on February 12, 2025. Union Minister of State for Finance, Shri Pankaj Choudhary, presented the award to the company's promoters, Mr. Uddhav Poddar and Mrs. Bhumika Poddar, at a ceremony held at The Imperial Hotel, New Delhi. This prestigious award recognizes Kaushalya Logistics' outstanding performance in supply chain operations and its significant contributions to the sector, enhancing the company's credibility, bolstering its market presence, and opening new avenues for business opportunities and strategic partnerships.

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About Kaushalya Logistics Limited

Kaushalya Logistics Limited, a former construction company that transitioned to cement industry logistics in 2010, has become a prominent pan-India player serving Dalmia Cement Bharat Limited across 70 locations. Offering comprehensive logistics solutions, including Full Truck Load (FTL) services, the company is an integrated provider of Logistics and Clearing and Forwarding (C&F) services, expanding into new sub-segments and verticals. For FY24, they reported revenues of Rs 147,832.91 lakh, EBITDA of Rs 1,951.73 lakh and a net profit of Rs 1,027.64 lakh while H1 FY25 saw revenues of Rs 48,289.22 lakh, EBITDA of Rs 1,254.22 lakh and a net profit of Rs 794.12 lakh.

The stock is up by 18 per cent from its 52-week low of Rs 78 per share. The shares of the company have an ROE of 26 per cent and an ROCE of 21 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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