This low-PE logistic solution provider received a Rs 150 crore order from Indian Railways, a small-cap multibagger stock with 450 per cent returns in 3 years!

Company targeting a turnover of Rs 700-750 crores by March 2025 and aim to become a debt-free by March 2026.

AVG Logistics Limited has secured a contract valued at approximately Rs 150 crore over six years for the lease of a Parcel Cargo Express Train (PCET) from the Indian Railways. This specialized train will operate between Bangalore and Ludhiana (Punjab), completing one round trip every week for the next six years, totaling 313 trips. The Express Service will cover the distance in approximately 72 hours, ensuring swift and seamless connectivity between these key locations.

Management Commentary

Commenting on the order, Mr. Sanjay Gupta, Managing Director & CEO, AVG Logistics Limited, said, “This initiative marks a significant partnership with Indian Railways and underscores our commitment to provide efficient end to end cargo transportation services. I am delighted to inform you all that this takes us a step closer to our sustainability goals, adding to the share of green logistics in our revenue portfolio. Earning revenue of Rs 150 crores through this contract will not only boost our revenue but also fuel our motivation to undertake many more such ambitious projects and elevate our financial performance. We look forward to the rest of the year with renewed vigour, excited to create value for the company, stakeholders, and the environment.”

Financial Performance

The company reported revenue of Rs 117.9 crores, an increase of 6.25 per cent from Q2 FY23. EBITDA for the quarter was Rs 21.3 crores, and EBITDA margin increased from 15.04 per cent to 18.13 per cent. PAT for the quarter was Rs 1.72 crores, and PAT margin increased from 0.81 per cent to 1.46 per cent. EPS for the quarter was Rs 1.46, an increase from Rs 0.77 in Q2 FY23.

About AVG Logistics Limited

AVG Logistics Limited is a leading provider of logistics solutions in India. The company offers a wide range of services, including transportation, warehousing, and distribution. AVG Logistics has a network of over 100 branches and warehouses across India. The company's customers include a wide range of industries, including retail, e-commerce, and manufacturing.

The company has a market cap of Rs 401 crore with a PE of 12x and an ROE of 9.66 per cent. The stock gave multibagger returns of 457 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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