Railway-Focused Supply Chain Solutions Company Secures Rs 139 Crore Order from Vedanta Ltd; Stock Price Surges Over 16 per cent to Intraday High

The shares of the company have a PE of 15.7x whereas the industry PE is 29x.

Shares of Western Carriers India Ltd (WCIL) climbed 12 per cent in Friday's trade after the company bagged a material handling order worth Rs 139 crores from Vedanta Ltd.

This order entails the Import, Finished Goods Domestic and Export Material Handling Contract at Jharsuguda Plant. The total value of the order is approximately Rs. 139 crores for a duration of four years.

Commenting on this development, Mr. Kanishka Sethia, CEO, WCIL said, “This order not only strengthens our relationship with our marquee client Vedanta but also opens avenues for future projects within the mining and mineral sector. This new order represents a significant milestone in our ongoing partnership. It is a testament to our consistent delivery of high-quality solutions and our ability to meet the evolving needs of our clients”

WCIL offers comprehensive end-to-end logistics services, ensuring seamless movement of goods across multiple modes of transport, including road, rail, and sea/river. Its expertise spans both domestic and EXIM cargo, facilitating efficient logistics within national borders and beyond.

Western Carriers (India) Ltd. provides logistic services. It also provides transportation, warehousing, consolidation and distribution, and custom clearance services. Its services include single window logistics, multimodal transportation, rail transport, road transport, cargo handling services, custom house agency, and ocean and freight services.

In the Quarterly Results of September 2024, the company reported revenue of Rs 431.43 crore, reflecting a year-on-year growth of 7.44 per cent and a quarter-on-quarter increase of 2.06 per cent, compared to Rs 422.71 crore in June 2024 and Rs 401.57 crore in June 2023. Net profit for the quarter stood at Rs 18.96 crore, growing by 8.72 per cent year-on-year and 0.32 per cent quarter-on-quarter, compared to Rs 18.90 crore in June 2024 and Rs 17.44 crore in June 2023. The net profit margin was recorded at 4.39 per cent, compared to 4.47 per cent in June 2024 and 4.34 per cent in June 2023.

For the financial year FY24, the company achieved revenue of Rs 1,685.77 crore, a 3.23 per cent growth from Rs 1,633.06 crore in FY23. The net profit for the year was Rs 80.36 crore, marking an 11.71 per cent increase from Rs 74.59 crore in FY23. The net profit margin improved to 4.42 per cent in FY24 from 4.09 per cent in FY23.

The shares of the company have a PE of 15.7x whereas the industry PE is 29x. Company has delivered good profit growth of 30 per cent CAGR over last 5 years. The stock has given 8.61 per cent returns on YTD basis.

Investors should keep an eye on this Small-Cap stock.

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