Logistic stock jumps 3% after signing contract with East Africa’s Abyssinia Group of Ind

The shares of this logistics company gained up to 3 percent after the company inked a contract with Abyssinia Group of Industries (AGI) one of East Africa’s Premier steel manufacturers.

Price Movement

With a market capitalization of Rs 82.92 crore, the shares of East West Freight Carriers Ltd were trading at Rs 6.50 per share, increasing around 0.62 percent as compared to the previous closing price of Rs 6.46 apiece.

Reason for Rise

The shares of East West Freight Carriers Ltd(EWFCL) have seen positive movement after entering into a service contract with East Africa’s Abyssinia Group of Industries (AGI). AGI has announced the commissioning of its factory in Jinja, Uganda, and has appointed EWFCL as its freight partner for providing logistics support service, which is expected to generate approximately Rs 7.5 crore in revenue for the company.

Financial condition

Looking forward to the company’s financial performance, revenue climbed by 58 percent from Rs 43.43 crore in Q3FY24 to Rs 68.21 crore in Q3FY25 but during the same time, net profit remained stable at Rs 0.09 crore as compared to the previous year.

Also read: Maharatna stock in focus after receiving ₹6,200 Cr LoI from Damodar Valley Corp

Clientele

The company boasts a strong clientele, including industry leaders like Aditya Birla Group, Ambuja Cement, Color Plus, Essar, Godrej, L&T, Pidilite, Polycab, Raymond, and TNT. Its trusted partnerships with these renowned brands highlight its credibility, market presence, and commitment to delivering quality solutions across sectors.

Ratio analysis

The company’s critical ratios show that the return on equity increased from (1.78) percent in FY22-23 to 10.22 percent in FY23-24, while the return on capital employed increased from 5.56 percent to 19.33 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.22 percent.

Company Profile

East West Holdings Limited is an India-based company engaged in logistics and allied activities. The Company operates through the Freight Services segment. The Company, through its wholly owned subsidiary, East West Freight Carriers Limited, carries out logistics business in India.

Written by Abhishek Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Logistic stock jumps 3% after signing contract with East Africa’s Abyssinia Group of Ind appeared first on Trade Brains.