AVG Logistics Ltd. (AVG) AI Stock Analysis

• Market Cap: ₹2.32B
• Dividend Yield: 0.66%
• Average Volume (3M): 3.10K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.20
• Revenue Growth: 6.71%
• EPS Growth: -53.24%
• Country: IN
• Employees: 420
• Sector: Services
• Sector Strength: N/A
• Industry: Integrated Freight & Logistics
• EPS (TTM): 3.38
• Shares Outstanding: 15,057,720
• 10 Day Avg. Volume: 5,754
• 30 Day Avg. Volume: 3,099
• PEG Ratio: -0.39
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -456.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹159.00 ▼(-11.20% Downside)

The score is driven primarily by mixed financial performance—strong gross profitability and moderate leverage offset by low net margins and negative free cash flow. Technicals weigh on the rating due to a sustained downtrend and negative momentum. Valuation helps support the overall score with a low P/E, but the modest dividend yield provides limited additional cushion.

Positive Factors

Very high gross profit margin

An 87.96% gross margin signals durable pricing power or low direct costs in core services. Over the medium term this supports the firm's ability to fund SG&A, invest in operations, and withstand input cost swings, underpinning structural profitability if operating expenses are managed.

Improving revenue growth trend

Mid-single-digit revenue growth that is described as 'improving' suggests expanding market penetration or service uptake. Sustained top-line growth supports long-term scale advantages, better absorption of fixed costs, and provides runway to expand services and network in the integrated logistics market.

Strong operating cash conversion

An operating cash flow to net income ratio of 1.74 indicates good cash conversion of reported earnings, reflecting earnings quality and reliable cash generation from operations. This durability aids working-capital management and short-term liquidity even if FCF requires attention.

Negative Factors

Negative free cash flow

Negative free cash flow constrains the firm's ability to internally fund growth, capex, or shareholder returns over the medium term. Reliance on external financing or slower reinvestment can impede capacity expansion and reduce strategic flexibility in a capital-intensive logistics environment.

Low net profit margin

A 3.87% net margin is thin relative to the very high gross margin, implying elevated operating, financing, or non-operating costs. Persistently low net profitability limits retained earnings and resilience to revenue volatility, constraining long-term ability to self-fund growth or absorb shocks.

Moderate leverage requires careful management

Debt-to-equity ~0.89 reflects moderate leverage that can amplify returns but raises interest and refinancing risk. Over 2–6 months, this level limits headroom for additional debt-funded expansion and necessitates disciplined cash flow improvement to avoid balance-sheet strain during industry downturns.

AVG Logistics Ltd. Business Overview & Revenue Model

Company Description

AVG Logistics Limited offers logistics services in India, Bangladesh, Nepal, and Bhutan. The company provides full truckload and less than truckload, dedicated/secondary solution, express delivery, parcel/door to door/household, multimodal, rail, freight forwarding, reverse logistics, and cold chain/refrigerated transportation services; and export services to Nepal, Bhutan, and Bangladesh. It also offers manpower handling, storage space, multiuser, and bonded warehousing services; and value added services comprising end to end, customized, ODC, custom clearing and port logistics, container on rent, and forklift/cranes on rent services. In addition, the company is involved in the trading business. AVG Logistics Limited was incorporated in 2010 and is headquartered in Delhi, India.

How the Company Makes Money

AVG Logistics Ltd. generates revenue primarily through its diverse service offerings in logistics and supply chain management. Key revenue streams include transportation fees charged for freight forwarding services, warehousing fees for storing goods, and additional charges for value-added services such as packing and labeling. The company also engages in long-term contracts with major clients, providing steady income through dedicated logistics solutions. Significant partnerships with shipping companies, freight carriers, and technology providers further enhance AVG's operational capabilities and enable it to offer competitive pricing, thus contributing to its earnings.

AVG Logistics Ltd. Financial Statement Overview

Summary

Revenue growth and an exceptionally strong gross margin (87.96%) support the score, but low net profit margin (3.87%) and negative free cash flow constrain overall financial strength. Balance sheet leverage is moderate (debt-to-equity 0.89) with reasonable ROE (8.65%), yet cash generation remains the key drag.

Income Statement

AVG Logistics Ltd. shows an improving revenue growth trend with a strong gross profit margin of 87.96% for the most recent year. However, the net profit margin is relatively low at 3.87%, suggesting room for efficiency improvements. The EBIT and EBITDA margins indicate moderate operational profitability. While revenue has grown, profitability at the net level needs enhancement.

Balance Sheet

The balance sheet exhibits a stable equity base with a debt-to-equity ratio of 0.89, showing moderate leverage. Return on equity is reasonable at 8.65%, indicating effective utilization of equity investments. The equity ratio of 49.42% reflects a balanced approach between debt and equity financing, though future growth might necessitate careful leverage management.

Cash Flow

Cash flow performance has been challenging, with a negative free cash flow. The operating cash flow to net income ratio is 1.74, indicating good cash conversion from earnings. However, the negative free cash flow impacts the company's ability to reinvest and grow. Improving free cash flow generation remains a priority for financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.54B	5.52B	4.78B	4.27B	4.30B	3.32B
Gross Profit	4.85B	4.85B	1.21B	754.87M	351.86M	2.94B
EBITDA	670.45M	984.12M	785.50M	496.68M	284.26M	143.21M
Net Income	210.92M	213.27M	319.21M	83.44M	9.61M	-17.20M
Balance Sheet
Total Assets	0.00	4.99B	4.49B	4.08B	4.24B	2.30B
Cash, Cash Equivalents and Short-Term Investments	85.58M	161.88M	87.76M	23.90M	51.76M	57.57M
Total Debt	0.00	2.19B	2.20B	2.66B	2.87B	1.19B
Total Liabilities	-2.47B	2.52B	2.49B	3.18B	3.42B	1.51B
Stockholders Equity	2.47B	2.47B	2.00B	897.67M	814.33M	786.00M
Cash Flow
Free Cash Flow	0.00	-7.95M	-504.13M	202.48M	59.55M	-209.15M
Operating Cash Flow	0.00	371.55M	9.69M	383.89M	288.89M	-36.20M
Investing Cash Flow	0.00	-353.99M	-350.15M	-157.06M	-241.92M	-164.54M
Financing Cash Flow	0.00	-16.91M	344.18M	-239.74M	-58.84M	200.15M

AVG Logistics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 179.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AVG, the sentiment is Negative. The current price of 179.05 is above the 20-day moving average (MA) of 159.47, above the 50-day MA of 172.83, and below the 200-day MA of 230.97, indicating a bearish trend. The MACD of -9.47 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 32.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AVG.

AVG Logistics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITCO	74 Outperform	₹6.89B	15.14	―	―	34.34%	2.00%
MAHESHWARI	69 Neutral	₹1.31B	6.92	―	―	2.13%	35.04%
PATINTLOG	62 Neutral	₹862.86M	10.50	―	2.13%	5.92%	14.93%
AVG	57 Neutral	₹2.32B	11.03	―	0.66%	6.71%	-53.24%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SNOWMAN	50 Neutral	₹6.48B	222.11	―	2.44%	9.91%	-66.86%
SICALLOG	39 Underperform	₹5.91B	-400.61	―	―	76.34%	94.50%

AVG Logistics Ltd. Corporate Events

AVG Logistics Enters Rail-Based Liquid Cargo Segment With ISO Tank Train Launch

AVG Logistics Limited has launched a new liquid logistics vertical, introducing rail-based transportation of bulk liquid chemicals using high-grade ISO tank containers, with its first customer Chemplast Sanmar Limited. Each dedicated train will carry 96 ISO tanks with a total capacity of about 3,100 tons per trip, and the company expects this operation to generate annual revenue of roughly Rs 22–24 crore, underscoring the commercial potential of its entry into this high-growth segment. The move leverages a long-term leased flatbed train from Central Warehousing Corporation and complements AVG’s imported ISO tanker fleet to provide integrated first-mile, long-haul rail, and last-mile delivery solutions. By shifting liquid cargo transport to rail, AVG aims to offer safer, faster and more reliable alternatives to conventional road-based transport while cutting emissions and congestion, thereby strengthening its role in India’s chemical and allied industries and supporting the country’s expanding chemical, pharmaceutical and industrial liquid export ecosystem.

AVG Logistics Buys Himachal Land for New Warehouse to Strengthen North India Footprint

AVG Logistics Limited has acquired a 2,295 sq metre land parcel in Tahliwal, Una district of Himachal Pradesh, to develop a warehouse and ancillary unit close to Nestlé’s factory, leveraging strong infrastructure, connectivity and access to local manpower. The move aligns with the company’s long-term strategy of capacity expansion and regional diversification, strengthening its footprint in North India and enabling it to offer enhanced value-added logistics services to Nestlé India and other customers in the region, while aiming to improve cost efficiency, expand its asset base and generate medium- to long-term value as the project is developed in phases subject to necessary approvals.

AVG Logistics Files SEBI Regulation 74(5) Compliance Certificate for December 2025 Quarter

AVG Logistics Limited has submitted a compliance certificate from its registrar and share transfer agent, MUFG Intime India Private Limited, confirming adherence to Regulation 74(5) of the SEBI (Depositories & Participants) Regulations, 2018 for the quarter ended 31 December 2025. The filing underscores the company’s ongoing regulatory compliance in relation to depository and participant norms, reinforcing governance standards and providing assurance to exchanges and investors regarding the proper handling and verification of its securities.