Alpha | Allcargo Logistics Ltd. – Equity Research Desk

Allcargo Logistics Ltd. – Integrated Logistics Player

Allcargo Logistics Ltd (ALL) is an integrated logistics service provider and operates in multiple business segments – MTO (Multimodal Transport Operations), CFS (Container Freight Solutions)/ICD (Inland Container Depot), P&E (Project & Engineering), Contract logistics, and Logistics Parks (LPs) in which it has forayed recently. Incorporated in 1993, as a freight-forwarding agent, ALL became a multimodal transport operator in 1998 by offering logistics services such as consolidation of LCL (Less than Container Load) and full-container load cargo for exporters and importers. In 2006, the company acquired ECU Worldwide, which is one of the world’s largest players in the LCL segment. ALL is also present in last-mile delivery.

Valuation

Allcargo’ end to end solutions for logistics services, market leader status in the LCL and CFS segment and the long-standing client relationship are the positive drivers of the company. Hence, we recommend a BUY rating in the stock with the target price (TP) of Rs.490, 14x FY24E EPS.

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