Allcargo Gati Shares Drop 10%, Nearing 52-Week Low After QIP and Q1 Update
Allcargo Gati Shares Drop 10%, Nearing 52-Week Low After QIP and Q1 Update
On Tuesday, shares of Allcargo Gati Ltd. fell by 10%, bringing them close to their 52-week low of ₹90. This marks the fifth decline in the last six trading sessions. The company released its monthly volume updates for May, showing a total volume of 103 kt, which is a 5% increase from May last year and a 6% rise compared to April this year. The growth in volume is attributed to sales initiatives and better service quality.
Recently, Allcargo Gati raised ₹169.28 crore by selling shares to eligible institutions through a Qualified Institutional Placement (QIP). The company stated that the funds from the QIP will be used for technology upgrades, infrastructure improvements, and reducing debt, which will help the company grow stronger. The raised funds will also improve the company’s financial health and support its growth plans. Major institutions like Macquarie Bank, BoFA Securities Europe, Goldman Sachs, and SBI General Insurance were among those who received shares in this QIP.
Despite the recent drop, the stock has lost all the gains it made in the past month and has underperformed in 2024, declining by 20%. However, the two analysts covering Allcargo Gati still have a “buy” rating on the stock. Brokerage firm Nuvama has set a price target of ₹163. As of Tuesday, Allcargo Gati shares are trading 10% lower at ₹100.3.
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