Massive FII Sell-Off! What's Really Happening With This Stock?

The share price of Lancer Container lines was trading at ₹15.40 on 17th March, 2025 with a market cap of ₹42 crore. The company touches its all-time high on 5th February, 2024 of ₹110 7 is currently down by more than 86%. Although the company has delivered a huge return of 3,794% from its day of listing since 13th April 2016 but at the same time wipes-out its investor's wealth by 765 in the last 12 months.

The FIIs have sell almost more than 65% of their stakes in the Lancer Container Lines. The FIIs holding is significantly dropped to only 5.86% as of January 2025 from 16.86% in June 2024. There are 3 key reasons why FIIs have reduced their stakes from the company. The major reason is being the prolonged share price decline, and about 36.5% of correction in its share price happened in the last month itself. The other two reasons are poor financial performance and decline in promoter’s shareholding. Although the company is pushing for aggressive expansion for its container capacity but still both profits and OPM have come down. At last, the promoter’s holding has been downed to 41.89% in Dec 2024 from 55.06% in Sep 2022. These are the reason of the FIIs for entrusting the company for its investment.

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The company was established in 2011 & operates in the shipping and logistics industry of India. The company have a variety of services to offer for its customers such as shipping solutions, container trading, project and freight forwarding, portable cabins, etc.

The company has built its strong presence in the global shipping market and currently provide its shipping solutions in every major sea trade route region like Indian Subcontinent, Mediterranean Sea, Red Sea, Black Sea, etc., to more than 30 countries.

The company has 22,000 leased containers as of Q1 FY25 which is more than double from what it was in FY 22 to only 11,388 TEUs. The company is trying to maintain same growth for increasing its container inventory by adding 200-300 containers every month. The company targets to achieve a total TEU capacity of 45,000 by 2026 which is again more than 2 times of its current container capacity. Along with its rapidly growing container capacity, company’s debt has also increased to ₹113 crore as of FY24 which was only ₹42 crore in FY 22.

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The company have shown 34.8% of quarter-on-quarter growth and its revenue have jumped to ₹209 crores in December 24 from ₹155 crore in December 23. But its earnings have sharply declined to ₹4 crore in Dec 24 which was of ₹14 crores in Dec 23. Moreover, the Operating Profit Margins of Lancer Container Lines have also seen a huge downturn & was only 4.69% in Dec 2024 from what it was 9.14% in Sep 2024.

DISCLAIMER: we are not SEBI –registered, all the above information is for education purpose only, consult with your financial advisor or do your own research before investment.