East West Holdings Ltd. (EWHL), a small-cap player in India’s logistics sector, is catching attention with its stock priced under ₹10 and a market cap of ₹112 crore. Recent developments, including an EMA (Exponential Moving Average) crossover and increased interest from Foreign Institutional Investors (FIIs), add an intriguing layer to this stock’s story. With a market cap of ₹112 Cr. and a ROCE of 4.85%, the question arises: Could this sub-10 rupees stock hold untapped potential for your investment portfolio?
Weekly Chart Analysis
A pivotal event in the form of an EMA crossover sparked a noteworthy development on the weekly chart.
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Following the crossover, a significant candle accompanied by substantial volume emerged, although the stock retraced afterward. Examining the chart more closely unveils the 13-14 rupee mark as a resilient resistance point. Should the price find support or consolidate in this range, it could signal favorable conditions for potential opportunities. The current closing at 8.80 on January 5, 2024, (BSE) adds an additional layer to this analysis.
Quarterly Results and FII Interest
Despite a 20.85% decline in net sales from Q1FY24 to Q2FY24, EAST WEST HOLDINGS LTD experienced an impressive 200% surge in net profit during the same period. Notably, FIIs have significantly amplified their stake, holding 6.78% of shares as of September 2023. The acquisition of 86,50,000 shares by Ag Dynamic Funds Ltd, showcasing a substantial increase from zero holdings in June 2023, underscores the growing appeal of the company among foreign investors.
Strategic Success
The company’s wholly-owned subsidiary, East West Freight Carriers Limited, secured a significant contract renewal with The Indian Institute of Science (IISC), Bengaluru, anticipated to generate Rs 18-22 crore in revenue. Moreover, a year-long contract with The Indian Institute of Petroleum, Dehradun, is expected to contribute Rs 1.50 crore in revenue during the current financial year.
About the Company
Established in 1981, East West Holdings Ltd actively engages in logistics and allied activities. Offering a comprehensive suite of international freight and trade management solutions, the company provides customized logistics services with access to an extensive agent network spanning air, ocean, rail, and road transport facilities. This positions EAST WEST HOLDINGS LTD as a key player in the logistics sector, potentially making it an enticing prospect for investors seeking untapped opportunities.
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