VRL Logistics on good roads
VRL Logistics, wherein VRL stands for Vijayanand Roadlines Limited is a Karnataka based company engaged in road transportation, logistics, publishing etc. The stock is amongst the top gainers on the BSE, going up over 4.5% at Rs.334.90. Its 52-week high is at Rs.377.50.
The market is happy that the company has announced plans to set up a new facility. The company has purchased land in Gujarat, for the construction of shipment yard. This was purchased at a cost of Rs.83 crore, which is to be paid by the company in instalments. The land would be available with the company to begin work within the next two years.
The company had not ended Q4FY17 on a good note – its net profit had plunged 30% (YoY) at Rs.8 crore on a 6.5% rise in net sales at Rs.443 crore.
Again, VRL is a logistics company and with GST expected to roll out from 1st Jul, like the rest in the pack, it is expected to be a big beneficiary and this new unit in Gujarat is seen as a move in that direction where it is getting ready for increased business.