Following its December quarter results, VRL Logistics’ share price saw a 20% increase to ₹559.50 on February 6 due to considerable purchasing demand. Despite this rise, the stock has dropped more than 23% over the last 12 months, reaching a 52-week low of ₹432.45.
A day after the company’s December quarter results were released, VRL Logistics’ share price touched a 20% upper circuit, indicating vigorous providing activity in the early trading on Thursday, February 6. On the BSE, the small-cap stock began at ₹538.50, up 20% from its previous close of ₹466.25, and reached its upper price range of ₹559.50. The stock was up 18% at ₹549 per share at around 10 AM.
Over the past year, the stock has been under pressure. The share price of VRL Logistics has dropped more than 23% in the past year, taking into account Thursday’s peak of ₹559.50. The small-cap stock reached a 52-week high of ₹699.35 on February 7 of last year, while a 52-week low of ₹432.45 was reached on January 28 of this year.
VRL Logistics Q3 Result:
The logistics solution provider company announced a four-fold increase in its Q3FY25 profit to ₹59.42 crore after market hours on February 5. Last year, the same quarter’s profit was ₹13.65 crore. Additionally, the profit margin increased from 2% to 7% year over year.
Operational revenue for the reviewed quarter increased by 12% year over year to ₹825.22 crore from ₹736.67 crore in the same quarter of the previous fiscal year.
EBITDA increased 78% year over year to ₹172.1 crore, and the EBITDA margin increased from 13% to 21%. According to the corporation, there were 60 more branches throughout the quarter.
How Should Investors Proceed?
Technical analysts advise investors to watch price activity around resistance at ₹580-₹585 and wait for a dip before purchasing the stock, given the over 18% increase this week.
Even though VRL Logistics had a good rise this week, Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, said that the Ichimoku Cloud and R3 Pivot resistance present significant resistance around ₹580-₹585. This implies that there may be pressure in this area.
Patel added that we suggested taking partial gains of around ₹580-₹585 and waiting for a downturn before considering new positions in light of these technical obstacles.
“A wait-and-watch strategy is recommended for now, but if the stock maintains above this barrier, it may signal more strength. An improved risk-reward entry would result from a sound retracement. According to Patel, traders should monitor resistant price activities before making the next move and look for internal or breakout confirmation.
