Accuracy Shipping jumps 5% after reporting 123% QoQ increase in net profit

Shares of this micro-cap company engaged in third party logistics solutions surged nearly 5 percent after reporting a strong 123 percent quarter-on-quarter profit growth.. The sharp rise in earnings, driven by increased demand and operational efficiency, boosted investor confidence, leading to a notable rally in the stock. 

Price Variation

On Friday, shares of Accuracy Shipping Ltd surged to an intra-day high of Rs.8.97 apiece, reflecting a 4.7 percent jump from its previous close of Rs.8.57 each. However, the stock later pared some gains and was trading at Rs.8.93 per share. Over the past five years, the shares have delivered over 180 percent returns.

Earnings Report 

Accuracy Shipping Ltd saw a notable upswing in its stock price, driven by strong growth in both revenue and net profit, as reflected in its latest financial performance.  

In Q3 FY25, the company reported revenue of Rs.254.4 crore, marking a 36 percent increase from Rs.187.4 crore in Q3 FY24. On a quarter-over-quarter basis, revenue surged 1 percent from Rs.253.5 crore in Q2 FY25, highlighting steady business expansion.  

Net profit for the quarter witnessed a significant 123 percent quarter-on-quarter rise to Rs.0.97 crore, compared to Rs.0.43 crore in the previous quarter. Additionally, on an annual basis, net profit turned around from a net loss of Rs.2.88 crore in Q3 FY24, demonstrating robust earnings growth. 

At present, Accuracy Shipping Ltd is trading at a Price-to-Earnings ratio of 14.05, significantly below the industry average of 40.32, indicating a relatively lower valuation. In terms of return metrics, the company’s Return on Capital Employed (ROCE) stands at 9.28 percent, while its Return on Equity (ROE) is 7.73 percent, reflecting its financial efficiency.

Also read: Chemical stock jumps 11% after reporting ₹5.5 Cr profit in Q3 against ₹12.5 Cr loss in Q2

Services and Domestic Presence

Founded in 2008, Accuracy Shipping Ltd. is a Gujarat-based logistics solutions provider offering customized, end-to-end services across India. The company specializes in transportation, distribution, freight forwarding, customs clearance, warehousing, and value-added logistics solutions. 

It also manages specialized project cargo, ensuring safe and efficient transportation of high-value equipment through multiple transport modes. With a pan-India presence, Accuracy Shipping has served approximately 1,300 clients since its inception, reinforcing its position as a comprehensive logistics partner.

Marquee Clients 

In the domestic market, Accuracy Shipping Ltd features a prestigious client roster that includes Vedanta Ltd, Arvind Ltd, Godrej Industries Ltd, Kataria Industries Ltd, NITCO Ltd, Varmora, RK Marbles, and PCBL Chemical Ltd.

Industry Diversification 

The company’s revenue diversification strategy has led to a shift in sectoral contributions over recent years. Revenue from the marble and granite sector accounted for 43 percent in FY23, declined to 38 percent in FY24, and currently stands at 41 percent for H1 FY25. To reduce reliance on core sectors like marble, granite, and ceramic tiles, the company has expanded into industries such as rubber, paper, textile, and glass. 

These sectors now collectively contribute approximately 28 percent of revenues for H1 FY25. Notably, the rubber sector generated 19 percent of revenue in FY24 and 15 percent in H1 FY25, while the marble sector continued to be a key driver, contributing 38 percent in FY24 and 41 percent in H1 FY25. 

Written by – Siddesh S Raskar

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