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Saturday, December 10, 2016
JET FREIGHT LOGISTICS LTD :- MULTIBAGGER STOCK
Earlier I have recommended two stocks from SME segments 1) VIDLI RESTAURANT , 2) ZEAL AQUA LTD. VIDLI GIVEN WHOOPING 800 % RETURNS IN JUST 9 MONTHS !!!! , ZEAL AQUA GIVEN 65 % RETURN IN JUST 5 MONTHS!!!! . Now today we are discussing one more stock from NSE SME segments, this may give multiple returns in investors portfolio.
JET FREIGHT LOGISTICS LTD
Jet Freight Logistics Ltd (JFLL) is engaged in logistics business
having branches located in various cities in India. Company is
registered with International air transport association (IATA) agent for
Air cargo. JFLL is providing services for Perishable cargo, Time
sensitive cargo and also provide Shipment of Hazardous cargo, ODC
consignments, pharmaceutical cargo, temperature controlled and general
cargo. Its main segment is transport of perishable cargo which includes
handling frozen and chilled meat, seafood, vegetables, fruits, cut
flowers and pharmaceutical products.
The company has tie ups with
various airlines in the world in order to provide tailor made solutions
based on customer needs. It offers the best rates along with the best
airline options. JFLL has also tied up with various agents across the
world who provide services of making the goods reach from international
Airport to the respective destinations depending upon the client needs.
The company as a freight forwarder take full responsibilities of
shipment from the point of receipt to the point of destination .Pricing
is based on nature of goods, location, type of service and facility
given to the customer. However sector at which the goods are been sent
plays a very crucial role in deciding the price of the goods.
Strong Customer Base:
The company has strong customer
base including its established relationships with customers lead to
stability of demand. It has certain reputed Customers which include Fair
Exports, Allanasons Private Limited, Glenmark Pharmaceuticals Limited,
Barkat Exports Private Limited etc.
The company’s total revenue has increased 42.10% to Rs 206.67 crore in
the fiscal year ended March 31, 2016 from Rs 145.44 crore in the fiscal
year ended March 31, 2015. The revenue has increased due to increase in
air freight income corresponding to increase in business. The company’s
Net Profit has increased 31.28% to Rs 0.96 crore in FY16 as compared to
Rs 0.73 crore in the fiscal year ended March 31, 2015 on the back of
increase in revenue & better management of resources. The company’s
Return on Net worth ratio has increased significantly to 21.69% in
FY2016 from 21.16% in FY15 and 19.88% in FY14, indicating that it has
utilized the shareholder’s investment well to create returns for them.
Currently Major part of the company’s revenue comes from Air freight and
the company does not have its exposure in regards to ocean freight, in
the near future it is planning to increase its business verticals and
also start operations with regards to ocean freight. The company is also
planning for expansion of its branches in tier II and tier III cities
as there is increase in flight connectivity in these cities and there is
more scope of business operations.
Indian logistics market recorded $104.10 billion revenue in 2014, and
is likely to reach revenues of $150-$160 billion by 2020.Transportation
accounts for about 60 per cent of the market revenues. Demand for
project logistics services will be particularly strong in the
manufacturing sector as the Indian Government's push to increase the
manufacturing output in the country will spur infrastructural activities
in this space. The total market opportunity for project logistics
services in India is estimated to be $150.86 billion for the 2014-2019.
India is strategically placed in a thriving trade zone connecting South
East Asia and Oceania on one end and Middle East, Africa and Europe on
the other end. India can develop itself as a logistics hub for a few of
such types of trades. India also has a strong potential to develop its
RoRo (Roll on Roll off) terminals into regional consolidation and
distribution centers for automobiles produced in India and South East
Asia. Similar hubs can also be developed for container trade and liquid
The trade logistics network forms the
backbone of modern supra-national supply chains. Even if global
production were to shift to India due to favourable wage-labour
arbitrage, skilled work force, availability of industry specific
clusters, reduction in non-tariff barriers amongst other incentives and
she becomes the factory of the world a la China, high logistics costs
could negate any low cost production advantage. Indian logistics costs
are estimated to be at a high of around 13 to 14 per cent of GDP, almost
double, when compared with 7 to 8 per cent of GDP in developed
countries having superior logistics performance. National
competitiveness as a whole would decide the success of 'Make in India'
strategy, which cannot be divorced from trade logistics performance.
Fortunately, the logistics barriers faced by India are self-imposed and
are not due to any geographical disadvantage such as being landlocked.
Jet freight logistics trading only in NSE SME segments @ 48 level ( market lot 4000 ), Investor can buy this stock @ current level for another multibagger returns.
The above is not a research report but information as available on
Before buying any stock take advice from certified person
Disclosure :- I am holding this shares in my portfolio.