Penny Stock Under Rs 25: Container Freight Company Completes Strategic Acquisition of 15 Per Cent Stake in Speedy Multimodes Limited

The company reported a 2 per cent year-on-year increase in volumes and a 4 per cent rise in revenue for the nine months ended December 31, 2024.

Allcargo Terminals Limited has announced the completion of an acquisition. According to a disclosure dated April 17, 2025, Allcargo Terminals Limited has acquired 40,80,000 shares, representing 15 per cent of Speedy Multimodes Limited (SML). The shares were purchased from Mr. Ashish Vijayprakash Chandna, who is the Chief Executive Officer of both Allcargo Terminals Limited and SML. This acquisition was formalised through a Share Purchase Agreement. The agreement was initially executed on March 10, 2025, between Allcargo Terminals Limited, Mr. Ashish Vijayprakash Chandna, and Speedy Multimodes Limited. With this acquisition, Speedy Multimodes Limited has now become a wholly owned subsidiary of Allcargo Terminals Limited.

Incorporated in 2019, Allcargo Terminals Ltd is in the business of Container Freight Stations and Inland Container Depots. ATL is a part of the All Cargo Group. It is the largest Container Freight Station Operator in India. The company provides Inland Container Depots (ICD) and warehousing services. It has 7 CFS at JNPT, Chennai, Mundra and Kolkata & 1 ICD at Dadri. Its operations include import/export cargo stuffing and unstuffing, customs clearance, and other services. The company operates in all major ports in India, namely, Jawaharlal Nehru Port Authority, Mundra (Gujarat), Kolkata, and Chennai.

Allcargo Terminals reported a 2 per cent year-on-year increase in volumes and a 4 per cent rise in revenue for the nine months ended December 31, 2024. The company’s EBITDA also grew by 5 per cent over the same period, with EBITDA per TEU (Twenty-foot Equivalent Unit) maintained above Rs 2,000 for the second consecutive quarter. However, the net profit for Q3FY25 declined by 19 per cent year-on-year to Rs 12 crores, which the company attributed to accelerated amortisation related to changes in the CWC contract.

In terms of strategic developments, the Board has approved the acquisition of the remaining 15 per cent stake in Speedy Multimodes through a share swap arrangement, making it a 100 per cent subsidiary of Allcargo Terminals. Additionally, the company secured a six-year extension for the Speedy Mundra facility, which will help enhance its operational capacity. Further expanding its infrastructure, Allcargo has signed a lease for 22 acres of land adjacent to its existing facility at JNPT, with operations expected to commence in Q1 FY25-26.

On the project front, the JNPT expansion is expected to deliver internal rate of returns (IRR) in line with existing projects, aided by minimal capital expenditure requirements. The Farukhnagar project is projected to require an investment of Rs 150 crores and is targeting an IRR of 25 per cent to 30 per cent . Similarly, the Mundra project is also expected to deliver an IRR in the range of 25 per cent to 30 per cent.

In terms of operational trends, the company reported a robust 11 per cent year-on-year growth in volumes for January. Management remains optimistic, expecting similar performance in February and March, supported by seasonal demand patterns.

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

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