Allcargo’s promoter raises stake, stock jumps 5.63%

Our Bureau | | Updated on: Dec 06, 2021

The shares of integrated logistics company Allcargo Logistics rose 5.63 per cent on Wednesday after the company’s Chairman Shashi Kiran Shetty increased his stake through two block deals on Tuesday. Shetty purchased 24.7 lakh shares through open market transactions.

The move to increase the stake shows the promoter’s confidence in the prospects of the company and his desire to capitalise on the benefits accruing to the logistics sector from successful implementation of the GST and the infrastructure status granted to the logistics industry, according to market sources.

The Allcargo stock is undervalued compared to peers in the industry, according to the source. In terms of P/E multiples, the stocks of much smaller firms such as GDL and Navkar Corp are trading higher than Allcargo. “At the current market price, the Allcargo stock is undervalued. The logistics sector is poised to perform better in the post-GST scenario. This will lead to further value-creation in the stock,” the market source said.

Allcargo is the world’s top less-than-container load or LCL cargo consolidator with presence in over 160 countries. The firm also runs multi-modal transport (MTO) operations, container freight stations (CFS) and provides project and engineering solutions.

Published on July 04, 2018
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