VRL Logistics share price surges 20% to hit upper circuit on Q3 boost; what should you do?

VRL Logistics' share price saw solid buying interest in the morning trade on Thursday, February 6, as it hit a 20 per cent upper circuit a day after the company reported its December quarter result. The small-cap stock opened at ₹538.50 against its previous close of ₹466.25 and surged 20 per cent to hit its upper price band of ₹559.50 on the BSE. Around 10 AM, the stock traded 18 per cent higher at ₹549 apiece.

The stock has been under pressure over the last year. Considering Thursday's high of ₹559.50, VRL Logistics share price has fallen over 23 per cent over the last year. The small-cap stock hit a 52-week high of ₹699.35 on February 7 last year and a 52-week low of ₹432.45 on January 28 this year.

VRL Logistics Q3 result

After market hours on February 5, the logistics solution provider firm reported a four-fold jump in its Q3FY25 profit to ₹59.42 crore against a profit of ₹13.65 crore in the same quarter last year. Profit margin also moved up to 7 per cent from 2 per cent year-on-year.

Revenue from operations for the quarter under review jumped 12 per cent year-on-year to ₹825.22 crore from ₹736.67 crore in the corresponding quarter of the last financial year.

EBITDA jumped 78 per cent YoY to ₹172.1 crore, while EBITDA margin improved to 21 per cent from 13 per cent YoY.

The company said the number of branches rose by 60 during the quarter.

What should investors do?

Considering a rise of nearly 18 per cent this week, technical experts suggest investors monitor price action near resistance around ₹580- ₹585 and wait for a pullback to buy the stock.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, observed that VRL Logistics, despite delivering a solid gain this week, faces strong resistance around ₹580- ₹585 due to the Ichimoku Cloud and R3 Pivot resistance. This suggests potential selling pressure in this zone.

"Given these technical hurdles, we advised booking partial profits near ₹580- ₹585 and waiting for a pullback before considering fresh positions," said Patel.

"If the stock sustains above this resistance, it could indicate further strength, but a wait-and-watch approach is prudent for now. A healthy retracement would provide a better risk-reward entry. Traders should monitor price action near resistance and watch for any signs of reversal or breakout confirmation before making the next move," Patel said.

Read all market-related news here

Read more stories by Nishant Kumar

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.