This small-cap company collaborates with Flipkart for integrated line haul solutions; scrip up over 4 per cent!
The shares of the company saw a spurt in volume by more than 2.24 times on BSE.
Mahindra Logistics Limited, one of India's largest integrated third-party logistics service providers, today announced its collaboration with Flipkart for integrated line haul solutions that will enhance operational efficiency and consistency as well as reinforce both companies’ shared commitment to innovation.
Mahindra Logistics will provide a dedicated fleet of heavy commercial vehicles, assistance in route management and network operations, and advanced analytics for Flipkart’s pan-India operations. Mahindra Logistics will operate 32ft single axle heavy commercial vehicles for Flipkart in collaboration with Daimler India Commercial Vehicles, which will run on multiple national routes, across the country. In line with the commitment to safety, all vehicles will have Advanced Driver-Assistance systems (ADAS), and various other vehicle security as well as driver safety & comfort-related advance features.
The fleet deployed by Mahindra Logistics will primarily facilitate Flipkart's e-commerce parcel movements through hub-to-hub operations. The improvement in TAT, higher safety levels, and fleet management underline Flipkart’s commitment to raising standards in the Indian e-commerce industry.
On Friday, shares of Mahindra Logistics Ltd gained 4.15 per cent to an intraday high of Rs 404.85 per share from its previous closing of Rs 388.75. At the closing bell, shares of the company were trading at Rs 393.55 per share, up 1.23 per cent with a spurt in volume by more than 2.24 times on BSE.
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Talking about the financials, the company has a market cap of over Rs 2,800 crore and has been maintaining a healthy dividend payout of 70 per cent. In its Quarterly Results (Q1FY24), the company reported net sales of Rs 1,293.22 (which is up by 8 per cent YoY) and a net loss of Rs 8.46 crore. The company reported excellent numbers in its annual results.
Investors should keep an eye on this small-cap logistics service provider stock.
Disclaimer: The article is for informational purposes only and not investment advice.