Tiger Logistics' shares soared by 7% after receiving a rating upgrade from Infomerics Valuation and Rating Private Limited (IVR). The improved outlook from "Negative" to "Stable" reflects the company’s better financial performance in Q1 FY25, driven by an increase in container volumes.
Rating upgrade drives share market investment interest
The rating upgrade for Tiger Logistics is a significant development for those interested in share market investment. The company's stock opened at ₹58.75 per share on the BSE, reaching an intraday high of ₹61.40. This performance, along with a 50% stock surge over the last three months, makes Tiger Logistics a notable player in the small-cap segment.
Investors keen on share market investment should note that Tiger Logistics’ rating for long-term bank facilities, worth ₹28.00 crore, has been reaffirmed at IVR BBB+/Stable, with the outlook shifted from "Negative" to "Stable."
Tiger Logistics’ Q1 FY25 financial performance
The rating upgrade can be attributed to Tiger Logistics’ robust financial performance in Q1 FY25. The company posted a total income of ₹102.8 crore, with the automobile sector alone contributing ₹58.1 crore. This improvement is a critical factor for those considering share market investment, as it demonstrates the company’s growth potential.
Tiger Logistics' revenue for the quarter was ₹101.2 crore, a 9.1% QoQ increase and a 2.4x YoY rise. The company also reported an EBITDA of ₹5.2 crore, showing a 10.6% increase QoQ and a 2.0x increase YoY. The EBITDA margin stood at 5.1%, while the PAT reached ₹4.6 crore for the quarter.
Impact of strategic growth on share market investment
The improved financial performance and stable rating outlook are essential indicators for potential investors. Tiger Logistics’ success in expanding its market position and financial stability could make it a strategic choice for share market investment. The company's focus on leveraging an asset-light business model while expanding its customer base indicates sustainable long-term growth.
Investors looking for opportunities in the small-cap segment can consider Tiger Logistics as a viable option. Its strong financials and upward trajectory post-rating upgrade offer a positive outlook for share market investment.
A strong contender for share market investment
With its rating upgraded and strong Q1 FY25 performance, Tiger Logistics is gaining traction in the stock market. For those exploring share market investment, the company's solid financial standing and strategic expansion plans make it a compelling choice, especially in the logistics sector.
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