Allcargo Logistics Ltd Stock Falls to 52-Week Low of Rs.9.06

Stock Price Movement and Market Context

The stock of Allcargo Logistics Ltd, operating within the Transport Services sector, recorded a day change of -2.79%, underperforming its sector by 1.94% on the trading day. This decline brought the share price down to Rs.9.06, the lowest level in the past year and since its listing. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In comparison, the broader market benchmark, the Sensex, opened flat but later declined by 354.77 points or 0.4% to close at 81,981.17. The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, suggesting some underlying market resilience despite short-term weakness. Notably, the NIFTY Realty index also hit a 52-week low on the same day, reflecting sectoral pressures in related industries.

Long-Term Performance and Relative Underperformance

Over the past year, Allcargo Logistics Ltd has delivered a negative return of -78.86%, a stark contrast to the Sensex’s positive 7.11% gain over the same period. This significant underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. The 52-week high for the stock was Rs.44.08, underscoring the magnitude of the decline from its peak.

Financial Metrics Highlighting Challenges

The company’s financial results have reflected a downturn, with operating profit shrinking at an annualised rate of -39.45% over the last five years. The quarterly net sales figure reported in September 2025 stood at Rs.537 crore, representing a sharp fall of 76.1% compared to the previous four-quarter average. The profit after tax (PAT) for the nine months ended was a loss of Rs.15.59 crore, deteriorating by 34.41% year-on-year. Additionally, cash and cash equivalents at the half-year mark were at a low of Rs.138 crore, indicating limited liquidity buffers.

Credit Metrics and Valuation Considerations

Despite the challenges, Allcargo Logistics Ltd maintains a relatively strong ability to service its debt, with a Debt to EBITDA ratio of 1.50 times. The company’s return on capital employed (ROCE) stands at 1.5%, which, while modest, contributes to an attractive valuation metric with an enterprise value to capital employed ratio of 1.4. This valuation places the stock at a discount relative to its peers’ historical averages, reflecting market caution given the company’s recent performance.

Profitability has also declined significantly, with profits falling by 59.5% over the past year, further weighing on investor sentiment and the stock’s market capitalisation grade, which is rated at 3. The company’s Mojo Score is 28.0, with a Mojo Grade of Strong Sell as of 19 January 2026, an upgrade from the previous Sell rating, signalling continued concerns about the stock’s outlook.

Shareholding and Sectoral Position

The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. Operating within the Transport Services industry, the company faces sectoral headwinds that have contributed to its subdued performance relative to broader market indices and sector peers.

Summary of Key Performance Indicators

To summarise, Allcargo Logistics Ltd’s stock has declined sharply to Rs.9.06, its lowest level in 52 weeks and all time. The company’s financial results reveal a significant contraction in sales and profitability, with net sales down 76.1% in the latest quarter and a loss in PAT for the nine-month period. The stock’s long-term growth trajectory has been negative, with operating profit shrinking at nearly 40% annually over five years. Despite a manageable debt profile and attractive valuation metrics, the stock’s performance relative to the Sensex and sector peers has been consistently weak.

This combination of factors has culminated in a Strong Sell Mojo Grade, reflecting the market’s cautious stance on the stock’s near-term prospects. The stock’s current trading below all major moving averages further underscores the prevailing downward trend.

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