Recent Price Movement and Market Context
The stock recorded this fresh low on 30 Dec 2025, continuing a downward trend with losses over the past three consecutive trading sessions. During this period, Allcargo Logistics Ltd’s share price has declined by approximately 3.16%. The day’s performance was broadly in line with the Transport Services sector, which itself has faced modest pressures. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the Sensex opened lower at 84,600.99, down 0.11%, and was trading marginally down by 0.04% at 84,659.32 at the time of reporting. The benchmark index remains 1.77% shy of its 52-week high of 86,159.02, with the 50-day moving average positioned above the 200-day moving average, indicating a mixed technical backdrop for the broader market.
Long-Term Performance and Valuation Metrics
Over the past year, Allcargo Logistics Ltd has delivered a negative return of -78.29%, starkly underperforming the Sensex’s positive 8.18% gain over the same period. The stock’s 52-week high was Rs.50.84, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company consistently lagging behind the BSE500 index in each of the previous three annual periods.
From a valuation perspective, the company’s Market Cap Grade stands at 3, reflecting a modest market capitalisation relative to its peers. The Mojo Score has deteriorated to 28.0, with the Mojo Grade downgraded from Sell to Strong Sell as of 15 Dec 2025, underscoring the negative sentiment surrounding the stock.
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Financial Performance and Profitability Trends
Allcargo Logistics Ltd’s financial results have reflected a challenging environment. The company reported net sales of Rs.537.00 crore in the September 2025 quarter, representing a sharp decline of 76.1% compared to the average of the previous four quarters. The profit after tax (PAT) for the nine months ended September 2025 stood at a loss of Rs.15.59 crore, marking a deterioration of 34.41% year-on-year.
Cash and cash equivalents at the half-year mark were reported at Rs.138.00 crore, the lowest level recorded in recent periods. Despite these pressures, the company maintains a relatively strong ability to service its debt, with a Debt to EBITDA ratio of 1.50 times, indicating manageable leverage levels.
Operational Efficiency and Valuation Considerations
The company’s return on capital employed (ROCE) is currently at 1.5%, which, while modest, is accompanied by an attractive enterprise value to capital employed ratio of 1.1. This suggests that the stock is trading at a discount relative to its peers’ historical valuations. However, the decline in profits by 59.5% over the past year highlights ongoing pressures on the company’s earnings capacity.
Majority ownership remains with the promoters, providing continuity in management control amid the stock’s recent performance challenges.
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Summary of Key Concerns
The stock’s decline to Rs.10.37 represents a culmination of several factors, including sustained negative returns over the past year, significant contraction in sales and profits, and a downgrade in its Mojo Grade to Strong Sell. The company’s operating profit has contracted at an annualised rate of -39.45% over the last five years, reflecting subdued growth prospects within its segment.
Despite a reasonable debt servicing capacity and valuation discounts, the persistent erosion in earnings and share price performance has weighed heavily on investor sentiment and market valuation.
Market Position and Sectoral Context
Operating within the Transport Services sector, Allcargo Logistics Ltd’s recent performance contrasts with the broader market’s relative stability. The Sensex’s proximity to its 52-week high and its technical indicators suggest a more positive environment for large-cap indices, whereas this small-cap stock continues to face headwinds.
The stock’s current trajectory and valuation metrics reflect the challenges faced by the company in maintaining growth and profitability amid competitive and market pressures.
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