Allcargo Logistics on the buzz

Allcargo Logistics has been buzzing for some days now. The stock is up today almost 4.5% at Rs.109.40, with an intra day high at Rs.111.

The stock has been showing some heavy volumes too and looks like this is accumulation based on its expected good prospects for H2FY14. The market is seeing the advantage of the acquisition it made in Sept’13 – it acquired US based Econocaribe Containers and this is now expected to give the company a strong foothold in US as those hesitant to do business with an Indian company are more open post this acquisition. In Europe too, business seems to be picking up and the company is hopeful that in second half of current fiscal, things will look much better. Thus the activity on the counter is purely based on expected improvement in performance in current H2.