Is Now The Time To Look At Buying Allcargo Logistics Limited (NSE:ALLCARGO)?

Allcargo Logistics Limited (NSE:ALLCARGO), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹87.85 at one point, and dropping to the lows of ₹63.35. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Allcargo Logistics' current trading price of ₹67.20 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Allcargo Logistics’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Allcargo Logistics

What Is Allcargo Logistics Worth?

According to our valuation model, Allcargo Logistics seems to be fairly priced at around 5.6% below our intrinsic value, which means if you buy Allcargo Logistics today, you’d be paying a fair price for it. And if you believe the company’s true value is ₹71.18, then there’s not much of an upside to gain from mispricing. What's more, Allcargo Logistics’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Allcargo Logistics generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Allcargo Logistics' earnings over the next few years are expected to increase by 45%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ALLCARGO’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on ALLCARGO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 4 warning signs that you should run your eye over to get a better picture of Allcargo Logistics.

If you are no longer interested in Allcargo Logistics, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.