Allcargo Logistics shares zoom 14% today; will this strong upmove sustain?

Shares of Allcargo Logistics Ltd surged 14.47 per cent during Friday's late session to hit a high of Rs 73.42. The stock saw heavy trading volume as around 15.56 lakh shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 3.37 lakh shares. Turnover on the counter stood at Rs 10.99 crore, commanding a market capitalisation (m-cap) of Rs 7,207.72 crore.

The Mumbai-based logistic firm recently said that its LCL volume for February 2024 witnessed an increase of 7 per cent from the year-ago period. "Considering shorter month, Feb volumes are usually lower than January and March. In 2023, Feb volume was 14 per cent lower than January volumes. However, this year February is only 5 per cent lower than January volumes. Overall demand environment has largely remained flat. Strong performance in February was driven by improved company performance and some delayed shipments due to Red Sea crisis," it stated.

On technical setup, support on the counter could be seen at the Rs 65-63 zone. "The stock has recently witnessed a decent correction from Rs 91.80 levels. It has bottomed out near the important support area of Rs 63. The counter has now indicated a trend reversal. So, one can anticipate a further rise with near-term targets of Rs 76.50-83," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"Support will be at Rs 65 and resistance at Rs 75. A decisive close above Rs 75 level may trigger a further upside till Rs 80. Expected trading range will be between Rs 60 and Rs 80 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The counter was trading higher than the 5-day, 10-, 150-day and 200-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-day and 100-day SMAs. The counter's 14-day relative strength index (RSI) came at 47.28. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 25.07 against a price-to-book (P/B) value of 5.07. Earnings per share (EPS) stood at 2.56 with a return on equity of 20.24.

Allcargo Logistics has recorded an 88 per cent decline in consolidated profit after tax (PAT), at Rs 17 crore, in the December 2023-24 quarter (Q3 FY24). It had posted a consolidated PAT of Rs 146 crore in the year-ago period.

During Q3 FY24, revenue from operations fell 22 per cent to Rs 3,212 crore from Rs 4,127 crore in the corresponding period last fiscal.