Why is Allcargo Logist. falling/rising?

Sep 04 2025 10:21 PM IST
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As of 04-Sep, Allcargo Logistics Ltd's stock price is at 31.55, down 1.9%, and has underperformed its sector. The company faces declining profits, reduced investor participation, and a bearish trend, indicating significant risks despite a high dividend yield.
As of 04-Sep, Allcargo Logistics Ltd's stock price is currently at 31.55, reflecting a decrease of 0.61, or 1.9%. The stock has underperformed its sector by 0.88% today and has experienced a trend reversal after three consecutive days of gains. It is trading below all key moving averages, indicating a bearish trend. Additionally, investor participation has declined, with delivery volume falling by 8.54% against the five-day average. The company has reported a significant decline in operating profit over the last five years, with a staggering annual rate of -164.41%. Recent financial results have also been poor, with a net profit after tax of -106.13 crore, a drop of -1440.9% compared to the previous four-quarter average, and a net sales decrease of -5.0%. Furthermore, institutional investors have reduced their stake, which may signal a lack of confidence in the company's future performance.

In the broader market context, Allcargo Logistics Ltd's performance has been notably weak compared to the benchmark, with a one-year return of -53.72% against a slight increase of 3.30% in the Sensex. Over the past month, the stock has declined by 10.47%, while the benchmark has only fallen by 0.37%. This consistent underperformance over the last three years, coupled with a high dividend yield of 6.52%, suggests that while the stock may offer some income, the risks associated with its declining profits and falling investor interest outweigh the potential benefits.
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