Look at the Allcargo Logistics share price right now and you might feel a bit of whiplash. As of mid-January 2026, the stock is hovering around the ₹10.40 mark. For anyone who remembers it trading in the ₹30s or ₹40s just a few months ago, this looks like a total collapse. But honestly? It isn't. Not in the way it seems.
Most people checking their portfolio see a massive red dip and panic. They think the company has hit a wall. In reality, what you're seeing is the aftermath of a massive corporate "surgery"—a demerger and merger scheme that finished up in late 2025. It basically split the business into different pieces.
The Great 2025 Shake-up
Wait, why is the price so low? Basically, on November 1, 2025, Allcargo underwent a huge restructuring. They spun off their international business into a new entity called Allcargo Global. If you held one share of Allcargo Logistics before the record date of November 12, 2025, you got one share of this new global entity.
At the same time, they merged their "Express" and "Consultative Logistics" businesses (the old Gati business) into the main Allcargo entity. When a company spins off a massive part of its value, the share price adjusts downward to reflect that the asset is no longer there. It’s like selling the engine of a car; the car is still a car, but it’s worth less.
Why the Market is Acting Nervous
The current Allcargo Logistics share price reflects a "new" company. It’s leaner, sure, but the financials have been a bit of a rollercoaster. In Q2 of FY26 (the September 2025 quarter), they managed a turnaround with a profit before tax of about ₹9 crore. That sounds small, but it’s a big deal after previous losses.
Revenue grew about 11% year-on-year to ₹537 crore. That's not bad. However, they've been getting hammered by notional foreign exchange losses—stuff that looks bad on paper but doesn't necessarily mean cash is flying out the window. In Q1 FY26, those FX losses were a whopping ₹83 crore.
Technicals and Moving Averages
If you're into charts, the vibes are... let's say "cautious."
- The 50-day DMA is sitting way up near ₹11.95.
- The 200-day DMA is around ₹10.65.
- RSI is at 37.87, which is getting close to "oversold" territory but hasn't quite hit the floor yet.
The stock is currently trading below almost all its major moving averages. That's a classic bearish setup. However, the delivery volumes have been interesting. On some days, we’re seeing over 97 lakh shares traded. Someone is buying this dip, even if the price is struggling to find a solid footing.
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What the Experts Are Saying
This is where it gets weird. Some analysts are still putting out price targets in the ₹39 to ₹45 range. Now, you’ve gotta be careful here. Many of these targets were set before the demerger was fully priced in, or they’re looking at a 12-month horizon where the "new" Allcargo finally starts showing the synergy benefits of the Gati merger.
Ketan Kulkarni, the MD and CEO, has been pretty vocal about a 20% CAGR target for EBITDA through 2028. That is a bold claim. If they actually hit that, the current ₹10 price point will look like a steal. But the market has a "prove it" attitude right now. The logistics sector is tough. Fuel costs, global trade tensions, and the mess in the Red Sea have made shipping a headache for everyone.
The Dividend Surprise
One thing that catches people off guard is the dividend yield. At these prices, it looks insane—some portals show it at over 18%. This is a bit of a statistical ghost. It’s based on the dividends paid out before the stock price adjusted for the demerger. Don't expect a ₹2 dividend on a ₹10 stock every quarter; the math just doesn't work that way. They did declare a ₹1.10 dividend in late 2024, but the company's priority now is clearly debt reduction and tech upgrades.
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Actionable Strategy for 2026
So, what do you actually do with this?
- Watch the ₹10.00 Support: If the Allcargo Logistics share price breaks below ₹10.00 on high volume, the next floor is way down at ₹9.30. That’s the danger zone.
- Check the February Earnings: The next set of quarterly results will be the first "clean" look at the merged entity without all the demerger noise. If the net profit stays positive, the "turnaround" narrative starts to look real.
- Mind the "Hidden" Assets: Remember that if you held this stock since last year, you should have shares of Allcargo Global in your demat account too. Evaluate the two as a pair, not just the single ticker.
- Small Cap Risk: This is now firmly a small-cap play with a market cap of around ₹1,024 crore. Expect volatility. This isn't a "set it and forget it" blue chip anymore.
The logistics game in India is moving toward "asset-light" models and digital control towers. Allcargo is trying to pivot that way with their "Hub Eye" systems and cloud-native tech. If you believe in the India logistics story—the whole "Viksit Bharat" 2047 push—this is a high-risk, high-reward bet on a legacy player trying to find a second wind.
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Keep an eye on the volume. Price follows volume, and right now, the volume is saying that the big players are still reshuffling their decks after the merger. Wait for a couple of green closing candles above the 20-day average before thinking about an entry.