VRL Logistics to report spectacular results, expects Zee Business analyst – stock surges 20%, share price hits new 52-week high

Zee Business Senior Research Analyst Varun Dubey in a conversation with Managing Editor Anil Singhvi, expects VRL Logistics to report spectacular quarter-four results, which is scheduled to release on June 12, 2021.

Dubey says, the company should report revenue of Rs 575 crore in the fourth quarter of the financial year as compared to Rs 498 crore in the same period a year ago. Similarly, the profit expected is around Rs 39 crore in Q4 FY21 as against Rs 2 crore in the March-ended quarter of the financial year 2020.

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Meanwhile, EBITDA is expected at Rs 90 crore in Q4 FY21 versus Rs 57 crore year-on-year basis, and margins are expected to rise by 15.7 per cent in the last quarter of FY21 as against 11.4 per cent in the same period a year ago, says the research analyst in results estimates.

Dubey expects, VRL Logistics would give better performance than TCI Express, moreover, in February – April period, the truck occupancy growth rose to 30-40 per cent and due to which revenue of the company in the March-ended quarter is expected to increase.

VRL Logistics से मजबूत नतीजों की उम्मीद...

नतीजे आएंगे कमाई कराएंगे में जानिए नतीजों से पहले शेयर में कमाई के ट्रिगर्स....#ResultsOnZee @AnilSinghvi_ @VarunDubey85 pic.twitter.com/gc0kKVvH0b

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Similarly, the company has also been constantly reducing its expenses and the impact of the same would be visible in the growth of EBITDA margins, Dubey says further.

There has been a complete shift from unorganised sector to organised sector amid the implementation of e-way and GST and during the pandemic, the organised sector was much more comfortable than unorganised, the research analyst says in his Q4 results expectations.

VRL Logistics jumped over 20 per cent and touched a new 52-week high to Rs 309.7 per share on the BSE intraday during Friday’s trade. The stock at around 02:00 pm is trading over 12 per cent higher to Rs 299.85 per cent on Friday as compared to 267.65 per share previous close.

The market analyst while explaining the chart said, the whole logistics sector is under rally, including VRL Logistics. He expects the stock would immediately grow on positional terms to Rs 315-320 per share, once it breaches Rs 300 per share level.