Patel Integrated Logistics:- A turnaround Story?

The company operates under two business segments: Air Freight and Warehouse. Under warehouse they offer a 360-degree solution wherein they offer storage, distribution and stock & vendor management services.

It offers unified logistics solution through the extensive infrastructure of Offices and Delivery destinations across all over the Country. The Company provides various services to their client through its different divisions and products. The Company offers a complete range of logistics products, which includes business activities, Warehousing, Air Cargo Consolidation etc

With over 60 years of logistics services, the company serves a wide set of industries like seafoods, granite, garments, engineering, goods, medical equipment, chemicals and more. It has presence in more than 89 airports across India with more than 75,000 delighted customers across various sectors. Having more than 125 offices at strategic locations.

Patel Warehouse: service offering with experienced human resources in the art of logistics, a time-tested and extensive network coupled with appropriate technology and a solution orientation has won us over 6000 customers availing top quality integrated logistics solutions and services. With over 100,000 sq. ft of warehousing space, Patel Warehouse has a clear edge over other ecosystem players via the Brick & Mortar infrastructure and knowledge offering, which has its imperative inherent advantages.

Key Strengths:

• The Company has operated since 1959 and is well known brand in B2B space.

• The Company pan India presence with operation 89 domestic airports out of 140. In India going forward it is expected to become 220 airports this can boost companies’ presence as well.

• The Company is associated with airlines Spice jet, Indigo, Vistara, the close down of jet airways was a temporary challenge.

• The Company has business relationship with amazon, flip kart, pharma and FMCG companies.

• Air India being privatized, Company is poised to create new synergy between Akasa Air and Air India.

• Company eyeing to achieve and expected revenue of ₹400 crores and ₹500 crores in FY 24 and FY25 respectively.

• Company is eyeing to achieve EBITDA of ₹25 crores and PAT expected around ₹10 crores by FY 23.

• Post right issue company market cap would be around ₹100 crore and is expected to be net debt free by FY23.

Technical Note

• Long Term Trend: Down wards

• Intermediate Trend: Consolidating

• Short term Trend: Consolidating

• Stock Support: ₹10-11

Stock has been in Consolidation range of ₹11-20 for one year for now

Post Right issue Company would be net debt free.

One can look to enter the stock with appropriate stop loss also Stock is taking support of EMA 200 

Fundamentally company is trying for turnaround, Company has completed its right issue, company would turn net debt free after right issue. Above ₹15-17  stock trend will change and one can look for ₹30-35 on the upside.

Review Report prepared by

Kunnj Lalka

Disclaimer

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