VRL Logistics surges 6%, hits new high on strong business outlook

Shares of VRL Logistics surged 6 for every cent to hit a report large of Rs 599.55 on the BSE in Thursday’s intra-day trade on powerful business enterprise outlook. The stock of the logistics option company surpassed its preceding superior of Rs 591.50 touched on February 7, 2022.

In the previous three days, the inventory has rallied 17 for each cent right after VRL Logistics signed Memorandum of Being familiar with (MoU) on April 18, 2022 with Ratna Cements (Yadwad) for transfer of the Wind Electric power (Sale of Energy) undertaking together with all fundamental belongings and liabilities as a likely concern on a slump sale foundation.






The management of the organization is searching to dispose off this enterprise contemplating the limited stability life of the claimed equipment as also to concentration on its Products Transportation business enterprise which is the big company phase, VRL Logistics said.

In the past a person thirty day period, VRL Logistics has outperformed the industry by surging just about 30 for every cent as compared to 1 for every cent drop in the S&P BSE Sensex.

On April 6, 2022, VRL Logistics introduced a capex prepare of Rs 560 crore to invest in 1,600 vehicles (~25,000t carrying potential) unfold more than the following 12-18 months. This capex is critical to change its more mature fleet that moves out because of to the auto scraping plan and capture the choose-up in need in the much less than load (LTL) phase.

It is predicted that the company would lose owned fleet capacity of upto 12,000 MT owing to scrapping owing vehicles. The proposed capacity addition duly staggered above the period indicated earlier mentioned would outcome in the addition of all around 25,OOO MT ensuing in a net addition of upto 13,000 MT (all around 20 per cent of current fleet capacity). This would also cater to anticipated advancement volumes in the close to medium phrase, the firm knowledgeable.

Motilal Oswal Money Solutions think VRL Logistics would be really very well positioned to capitalize on the development prospect just after this capability addition. With strong balance sheet, the corporation would comfortably control the capex funding by availing an additional personal debt of Rs 300-350 crore together with interior accrual, the brokerage agency explained with ‘buy’ ranking on the inventory and target price tag of Rs 665 for every share.

Tech watch


Outlook: Bullish


Assistance: Rs 571


Concentrate on: Rs 705



The shares of VRL Logistics are investing in their all-time superior zone with a robust bullish candle on the everyday charts. With today’s hole-up trade, the inventory has breached over the Bollinger Band resistance, put at Rs 583.



On the other hand, when the price tag-to-shifting regular motion indicates favourable bias for the stock on the daily charts, particular momentum indicators need warning. The 14-working day Relative Energy Index (RSI) is in the overbought zone and the gradual Stochastic indicator indicates consolidation.



(With inputs from Nikita Vashisht)

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