Afcom Holdings, a logistics solutions provider, has seen its shares move in an unprecedented upward trajectory since its listing. The stock locked in the upper circuit for the second day in succession on Tuesday, up 5% to ₹732.65 during intra-day trading on the Bombay Stock Exchange (BSE).
The stock has gone up by 68% in the last 11 trading sessions from ₹435 on November 14, which is indicative of strong market sentiment.
Dramatic Growth After Listing
Afcom Holdings listed on the BSE SME segment on August 9, 2023. This stock entered the market with a whopping 99% premium over its issue price of ₹108, listing at ₹215.45 per share. Four months down the line, the stock trades at nearly seven times its issue price, amounting to a mind-boggling 578% growth.
The company specializes in logistics solutions and operates on an airport-to-airport model. Its operations cover several key regions such as India, Hong Kong, Singapore, Thailand, Japan, South Korea, China, and Taiwan. Afcom Holdings closely works with leading freight forwarders across India and the ASEAN region including Singapore, Indonesia, and Brunei.
The company has further consolidated its market presence through strategic partnerships. It has entered an agreement with Taylor Logistics Private Limited, a company of the TTK Group, to represent an airline in India. Afcom Holdings is a GSSA for the Air Logistics Group, that is, a division of the World Freight Company representing it in far-eastern countries.
Strong Financial Performance In FY25
Afcom Holdings reported robust financial results for the first half of the fiscal year 2024-25 (April to September). The company recorded a 54.64% year-on-year (YoY) increase in profit after tax (PAT), amounting to ₹18.86 crore. Revenue grew by 25% YoY to ₹88.76 crore, while earnings before interest, tax, depreciation, and amortization (EBITDA) surged 65% YoY to ₹27.49 crore. EBITDA margins also saw significant improvement, rising by 711 basis points to 30.47%.
During the meteoric rise in its stock price, Afcom Holdings addressed concerns over the unusual increase in trading volume. The company said that all material and price-sensitive information affecting its operations or performance has been divulged in compliance with Regulation 30 of the SEBI Regulations, 2015.
On November 28, the company issued a statement, “We hereby further inform you that there has not been an occurrence of any material event as defined under Regulation 30 of the SEBI Regulations, 2015, which might have influenced the operations, performance, or market price of the shares.”
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