INTRODUCTION
Allcargo Logistics Ltd is an Indian logistics company,
headquartered in Mumbai.
Founded in 1994 by Mr. Shashi Kiran Shetty, Allcargo over
these years has successfully transformed into one of the
India’s largest integrated logistics solutions provider in
the private sector.
Analysis of 5 Financial Years
Income Statement of 5 years
Ratio Analysis
Activity Ratios
PESTLE Analysis
POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ENVIRONMENTAL LEGAL
Government Population Technology Weather Discrimination
Economic
Policies Growth Rates Incentives Laws
Growth
Climate Change
Political Safety Emphasis Level of Antitrust Laws
Manufacturing
Innovation Geography
Stability Sector
Health Employment
Conscious Automation Environmental Laws
Corruption Industrial
Policies
Environment
Culture Barriers R&D Activity Consumer
Tax Policies Pollution
Interest Rates Protection Laws
Control
Technological
Labour Law Copyright and
Inflation Rates Change
Patent Laws
Trade
Technological
Restrictions Health and
Awareness
Safety Laws
SWOT Analysis
STRENGTHS WEAKNESS
Stocks with Consistently High Returns over the Last quarter, mutual funds reduced their stock
Last Five Years - Nifty500 holdings.
Increased Profit Margin leads to an increase in Net The promoter's stake in the company is
Profit (QoQ) shrinking.
For the past four quarters, revenue has been For the past two years, annual net profit has
increasing. been falling.
Profits have risen every quarter over the past two Stocks in the sell zone are those with a low
years. number of days traded at their current PE and
P/BV.
Zero Promoter Pledge Organization
Companies with increasing net profit margins,
both quarterly and year-to-date
OPPORTUNITIES THREATS
Companies with Exciting Future Prospects Nifty500 Future Results with Declining Share
Price Over the Week
Low-Crude-Oil-Prices-Beneficial-to-Stocks
Companies with a large market capitalization
Expected results for Nifty500 firms with have a smaller public shareholding.
net profit growth of more than 10% YoY
and QoQ in the previous quarter. Stocks with a high Trendlyne Valuation Score
The 30 day SMA has crossed the 200 day Top-level management resignation is a red
SMA, and the current price is higher than flag.
the open.
Scores with a lot of momentum (Technical
Scores greater than 50)
The greatest turnaround from a 52-week
low
Porter's Five Forces Model
Company has to compete with
Threat of New Entrants Low Capital Investment.
more than a dozen companies.
Accessible distribution
High exit cost due to high
channels.
inventory investment.
Growing market.
Rivalry Among
Negligible product/service Existing Companies Low entry barriers & availability
differentiation leads to price
of ample funding.
competition only.
Bargaining Power Bargaining Power of
Threat of Substitutes
of Supplier Buyers
Multiple platforms Multiple substitutes available. Multiple choices.
Low to medium switching cost. Negligible product or service Low Switching Cost.
differentiation.
Huge scope for integration to sell Competition increasing
their own product thus increasing Substitutes are similar or thus. bargaining power is
bargaining power. better. shifting towards customer.
THREAT FROM NEW ENTRANTS:
Replacement of product and services is easily available in logistics if you produce a commodity or service
that is undifferentiated. Customer might switch from your product.
For our company:
Substitutes may be the transporters who provide services at the cheaper rate.
Overall threat of substitutes is moderate to high.
THREAT OF SUBSTITUTES:
In transport and logistics industries, technology has provided a platform to new business models. Company
may have the
market cornered with the product, but the success may inspire others players to enter the business and
challenge your position.
For our company:
Threat is from various cargo companies that may enter the logistics business.
Threat is also from the entry of international companies like FedEx, UPS, SNCF, DHL.
BARGAINING POWER OF BUYERS
The power of buyers describes the effect that your customers have on the profitability of your business the
transaction between the seller and the buyer create value for both parties.
For our company:
The bargaining power of buyers is moderate because of the sufficient number of logistic companies.
BARGAINING POWER OF SUPPLIERS
Any business requires inputs labors, parts, raw material and service. The cost your inputs have a significant effect on
your company's profitability
For our company bargaining power of suppliers depends on the following factors:
Price of fuels
Taxes
Government policies
Cost of land
Increase in rents
Bargaining power of supplier is moderate to high.
RIVALRY AMONG COMPETITORS:
Rivalry among competitors is often the strongest among the porter's five forces.
For our company the competition is from:
Unorganized transporters.
International players like DHL.
Domestic company like Mahindra & Mahindra, CCI, TCI.
Competition is High in the industry.
Thanks
Group - 7 202012 Ashwani Shukla
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