Synopsis: AVG Logistics jumped 12% after the firm entered into a green logistics joint venture deal with Nestlé India and Ashok Leyland, which involves the use of 50 CNG vehicles. The CNG fleet is expected to travel approximately 2.75 lakh kilometres per month, leading to an estimated reduction of about 1.1 lakh kg of CO₂ emissions annually.
The shares of this company, which provides 24/7 end-to-end supply chain logistics services and specialises in road transportation services and warehousing facilities with 70-plus branches across India, had its shares in focus after it announced a strategic partnership with companies like Nestlé India and Ashok Leyland for logistics services involving 50 CNG trucks.
With the market cap of Rs 284 crore, the shares of AVG Logistics Ltd had hit their intraday high at Rs 197.65, gaining about 12 per cent compared to their previous day’s closing price of Rs 175.70. The shares are trading at a PE of 13.7, whereas their industry PE is at 24.9. The shares have given a return of 260% over the last 5 years.
About the strategic partnership.
AVG Logistics has entered into a strategic green supply chain partnership with Nestlé India and Ashok Leyland, marking a significant step toward sustainable logistics operations. As part of this initiative, the company has rolled out a dedicated green corridor for Nestlé, supported by the deployment of 50 CNG-powered trucks. This move aligns AVG Logistics with the growing focus of large corporates to bring down carbon footprints across their supply chains.
Efficiency and sustainability are blended together in this initiative from an operational point of view. The CNG fleet is expected to travel approximately 2.75 lakh kilometers per month, leading to an estimated reduction of about 1.1 lakh kg of CO₂ emissions annually. Beyond environmental benefits, the use of CNG vehicles should also contribute to cost efficiency and fuel stability, strengthening the supply chain resilience for Nestlé while reducing dependence on conventional diesel logistics.
This partnership strategically strengthens AVG Logistics’ credibility with marquee clients and positions the company for serious consideration in green and technology-led logistics solutions. Partnership with industry leaders like Nestlé India and Ashok Leyland not only fosters sustainable growth but can translate into long-term business opportunities and improved financial performance while demand for environmentally responsible logistics continues to rise.
The revenue from operations for the company stands at Rs 143 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 138.46 crores, up by about 3 per cent YoY. However, the net profit stood at Rs 5.08 crore in Q2 FY26, down from Rs 5.38 crore in Q2 FY25.
The company has a diversified multimodal logistics business consisting of multimodal transport operations, cold chain services, warehousing, and value-added services. This allows the company to manage the supply chain end-to-end.
The company’s diversified business allows it to efficiently transport goods from the road network to the rail network and then to the port network. The value-added services add to the customer retention and profitability of the company by making it a one-stop logistics solution provider and not a mere transport service provider.
The customer base represented in the client portfolio is a diverse and high-quality one in the FMCG, automotive, chemicals & pharma, and power, electronics, telecom, and e-commerce segments. Being associated with or having worked for MNC clients like Nestlé, Hindustan Unilever, ITC, Tata Group, PepsiCo, Apollo Tyres, Johnson & Johnson, GSK, Tata Chemicals, Airtel, and Jubilant clearly showcases the legitimacy of their functioning in the market and the capability of catering to complex supply chains.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
