Accuracy Shipping Surges 5% After Posting 123% QoQ Profit Growth
Stock Gains on Strong Earnings
Shares of Accuracy Shipping Ltd, a micro-cap third-party logistics provider, jumped nearly 5% on Friday following the company’s impressive 123% quarter-on-quarter (QoQ) rise in net profit. The strong financial performance, driven by rising demand and improved operational efficiency, fueled investor confidence, pushing the stock to an intra-day high of ₹8.97 per share, up from its previous close of ₹8.57.
Despite a slight pullback, the stock was trading at ₹8.93 per share at the time of writing. Accuracy Shipping has delivered over 180% returns in the past five years, showcasing its long-term growth potential.
Earnings Report: Strong Revenue & Profit Growth
Accuracy Shipping’s financial results for Q3 FY25 indicate a solid growth trajectory. The company’s revenue surged 36% year-on-year (YoY) to ₹254.4 crore, compared to ₹187.4 crore in Q3 FY24. Sequentially, revenue grew 1% QoQ from ₹253.5 crore in Q2 FY25, reflecting steady business expansion.
The most significant highlight was the 123% QoQ increase in net profit, which jumped to ₹0.97 crore from ₹0.43 crore in the previous quarter. Even more notably, the company made a turnaround from a net loss of ₹2.88 crore in Q3 FY24, indicating strong earnings growth and improved profitability.
With its robust performance, Accuracy Shipping is now trading at a Price-to-Earnings (P/E) ratio of 14.05, significantly below the industry average of 40.32. This suggests that the stock is relatively undervalued compared to its peers.
| Financial Metrics | Value |
|---|---|
| Market Cap | ₹131 Cr. |
| Current Price | ₹8.67 |
| 52-Week High/Low | ₹14.6 / ₹8.01 |
| Stock P/E | 9.99 |
| Book Value | ₹7.91 |
| ROCE | 5.38% |
| ROE | 0.43% |
| Debt to Equity | 0.96 |
| Industry P/E | 23.8 |
| Debt | ₹114 Cr. |
| PEG Ratio | -0.23 |
| Intrinsic Value | ₹9.59 |
| Graham Number | ₹12.4 |
| Piotroski Score | 5.00 |
| ROIC | 5.26% |
Accuracy Shipping: A Leading Logistics Player
Founded in 2008, Accuracy Shipping Ltd is a Gujarat-based logistics solutions provider that offers end-to-end services across transportation, freight forwarding, customs clearance, warehousing, and value-added logistics.
The company specializes in managing high-value project cargo, ensuring smooth and safe transportation of heavy equipment across various transport modes. Over the years, Accuracy Shipping has built a strong client base and has served over 1,300 customers across India.
Marquee Clients & Diversified Revenue Streams
Accuracy Shipping boasts a strong clientele, including Vedanta Ltd, Arvind Ltd, Godrej Industries Ltd, Kataria Industries Ltd, NITCO Ltd, Varmora, RK Marbles, and PCBL Chemical Ltd.
The company has also actively diversified its revenue base, reducing dependence on the marble and granite sector. While this segment accounted for 43% of revenue in FY23, its contribution dropped to 38% in FY24 before increasing slightly to 41% in H1 FY25.
Meanwhile, Accuracy Shipping has expanded into rubber, paper, textiles, and glass, which now contribute 28% of total revenue. The rubber sector, in particular, contributed 19% in FY24, though its share dipped to 15% in H1 FY25.
Stock Outlook & Valuation
Accuracy Shipping’s recent financial performance and strong turnaround in profitability suggest a promising outlook. The company’s relatively low P/E ratio of 14.05 compared to the industry average of 40.32 makes it an attractive investment for value investors.
Moreover, its efforts to diversify revenue streams and expand across multiple industries indicate long-term growth potential.
With its steady revenue expansion, improving profitability, and robust market presence, Accuracy Shipping remains a stock to watch in the logistics sector.
Conclusion
Accuracy Shipping Ltd’s 5% surge following its 123% QoQ profit jump has drawn attention from investors. With strong revenue growth, a diversified client base, and an improving financial position, the company is well-positioned for future growth.
While short-term market fluctuations may affect stock movement, long-term investors may find value in its growth trajectory and competitive pricing. As the logistics sector continues to expand, Accuracy Shipping remains a promising player in India’s growing supply chain industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.