Allcargo Logistic ltd is another share which has given good returns in the past and bonus shares in the ratio of 3:1. But there is sharp decrease in net sales and profits of this company, so it is better to remail away from it till it starts earning good returns. In last six months this stock has gained 27% and 167% in last three years. The stock is very volatile in nature and does not follow a definite path. This small cap logistic company needs to improve its business and its earnings because a stock cannot just go up on the speculations.
This cargo company has a strong base and ship products around the world through brands like Gati. At present company is in restructuring its business with the help of demerger. Company has already issued bonus shares and its shares have already seen new heights. All these factors make this stock very risky to invest. The latest technical chart of the stock is positive but risk is associated with the stock. It will be better to invest in this stock once it starts giving good results in future.
Company has good plans for the future like adding more space for warehousing and advance management systems. Allcargo is looking to modernize its business so that it can keep up with the competition. Company is selling its few properties to remain debt free and pump cash to its expansion plans. In my opinion, it will be better to remain away from this stock till it returns back to growth trajectory.
Present Price- 87.80
Action- Keep away
Future Potential- May go down
Risk Level- High
Future potential – No estimate
Stop Loss – -
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