Allcargo Terminals RI review - (Not Rated)

•    The company is engaged in cargo handling and related services.
•    It marked growth in its top lines, but bottom lines were inconsistent for the reported periods.
•    It is operating in a highly competitive and fragmented segment.
•    Based on its financial data, the RI appears aggressively priced. 
•    The RI is at a discount of around 35%, but it appears pricey. Well-informed investors may park moderate funds for long term.

ABOUT COMPANY:
Allcargo Terminals Ltd. (ATL) is engaged in the business of cargo handling and related services. It has a wide pan-India presence, and when combined with a multi-city consolidation network, gives the business a strong competitive edge. The company operates 7 CFS and ICD facilities in India, of which 4 are owned and 3 are through subsidiaries and Joint Ventures. The company is well-positioned at key ports of JNPT, Mundra, Chennai and Kolkata that drive more than 80% of India's container traffic. It is also best placed to capture the ICD opportunity driven by the development and forward strides in Dedicated Freight Corridors (DFC). The company has the privilege of being the market leader in JNPT and Mundra and is among the top three CFSs in Kolkata and Chennai.

The Company is in the process of conversion of land use acquired for the New Mundra CFS to industrial use. The timelines and outcome of this process are contingent upon approvals from multiple authorities. Any delay or failure in obtaining these approvals may adversely impact project timelines, facility operational efficiency, cargo handling capacity and overall business performance. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 39798999 equity shares of Rs. 2 each at a fixed price of Rs.20 per share to mobilize Rs. 80.00 cr. The RI opens for subscription on November 24, 2025, and will close on December 09, 2025. The company is offering RI in the ratio of 3 for 19 to its eligible stakeholders as of the record date of November 14, 2025. The company is asking for 25% (i.e., Rs. 5.00 per share) on application for the number of shares applied, and the rest by one or more calls from time to time at the discretion of the company. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 0.61 cr. for this RI process, and from the net proceeds, it will utilize Rs. 40.00 cr. for expansion of container storage and handling capacity, Rs. 20.00 cr. for repayment of loans, and up to Rs. 20.00 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 53.55 cr. will stand enhanced to Rs. 61.51 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 615.09 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted total income / net profit/ - (loss), of Rs. 732.98 cr. / Rs. 44.70 cr. (FY24). Rs. 757.81 cr. / Rs. 30.23 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 20.41 cr. on a total income of Rs. 394.42 cr. Its NAV stood at Rs. 12.23 per share as of September 30, 2025, against Rs. 11.31 as of March 31, 2025. 

The company posted growth in its top lines, but bottom line marked down trends for the reported periods amidst rising competition. 

DIVIDEND POLICY:
The company has paid last 25% dividend for FY24. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543954 (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 36.98 on November 13, 2025, and opened on an ex-right basis at Rs. 31.66 on November 14, 2025. Since then, it has marked a high/low of Rs. 33.79 / Rs. 29.83. The scrip last closed at Rs. 30.75 as of November 20, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 40.26 / Rs. 18.37. 

The promoters’ holding has been constant at 65.82% for the quarter ended with September 30, 2025. The counter is well maintained above the RI price to tempt investors.