Buy VRL Logistics, target price Rs 655: ICICI Securities

ICICI Securities has a buy call on VRL Logistics with a target price of Rs 655. The current market price of VRL Logistics Ltd. is Rs 459.9. VRL Logistics incorporated in 1983, is a Small Cap company with a market cap of Rs 3999.06 crore, operating in the Logistics sector.

VRL Logistics' key products/Revenue Segments include Income From Transportation Services, Scrap, Services (Courier), Income (Airlines) and Income From Advertisement for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Standalone Total Income of Rs 801.98 crore, up 8.09% from last quarter Total Income of Rs 741.98 crore and up 12.11% from last year same quarter Total Income of Rs 715.33 crore. The company has reported net profit after tax of Rs 35.82 Crore in latest quarter.

The company?s top management includes Dr.Vijay Sankeshwar, Mr.Vinay J Javali, Mr.Virupaxagouda A Patil, Mr.Shantilal Jain, Mr.Shankarasa Ladwa, Mrs.Medha Pawar, Dr.Anand Pandurangi, Mr.Shiva Sankeshwar, Mr.Raghottam Akamanchi, Dr.Ashok Shettar, Mr.L R Bhat, Dr.Anand Sankeshwar, Dr.(Mrs.)Shailaja Ambli. Company has Walker, Chandiok & Co.LLP as its auditors. As on 31-12-2024, the company has a total of 9 crore shares outstanding.

Investment Rationale
For surface express companies, ICICI Securities believes, the Q2FY25 EBITDA margin of VRL Logistics may sustain in Q3FY25 as the price hike was widely accepted by customers. VRL?s volume may grow mainly on account of new branch additions. In the logistics segment, VRL Logistics is a top pick for ICICI Securities and they have given a BUY call with a target price of Rs 655.

Promoter/FII Holdings
Promoters held 60.24 per cent stake in the company as of 31-Dec-2024, while FIIs owned 3.65 per cent, DIIs 25.57 per cent.