Allcargo Logistics: TA (Near Breakout) & FA

٢٩ أغسطس ٢٠٢٢

Another good example of candles respecting Parallel Channel (PC)

◉Technical Analysis:-
Analysis with The Slope of Parallel Channel (SPC):
SPC B = SPC A1 and so SPC A2
SPC of D = SPC of E

And now we are at the breakout level of the Big PC B
Here we can see the PC A2 is formed near this breakout
Such same PC A1 was formed before the breakout at 294 on 2-Nov-21
Today, we got a strong body candle after the breakout candle of 320 on 26-Aug-22

Other indicators:
Volume: Since couple of sessions there's good buying volume above volume average
RSI: RSI is strong with positive divergence
RS: RS is also breaking above 0

Overall, all technical elements are strong towards bullish view once we get opening above 338 level.

◉Fundamental Analysis:-
Q1FY23 results were superb
Rev: 5674Cr Vs 3449Cr Q4
PBT: 358Cr Vs 336Cr Q4
PAT: 280Cr Vs 105Cr Q4
EPS: 10.8 Vs 4.8 Q1, 10 Q4

Demerger will bring strategic business units

One of the main reasons my view is bullish is because;
Make In India-Atmanirbhar-China+1
Cargos are major chunk of the India's export
Allcargo is into Contract logistics with Indian and International clients in chemicals, pharma, auto, e-com etc.
Offers 3PL - Logistics, Warehousing and other value added services

Major strategic areas of business:
International Supply Chain (MTO)
Express & Ecommerce Logistics
Container Freight Stations & ICDs (Will be covered under ATL after demerger)
Rental & Other annuity Businesses (Will be covered under TRLPL after demerger)

Hence, view is bullish considering both TA & FA points. And will be a good pick for LT portfolio.