TCI Express Stocks: Buy TCI Express; Target price Rs 2200: ICICI Securities | Techno Glob


TCI Express has a buy call with a target price of Rs 2,200. Current price. 1882.35 rupees.




TCI Express Ltd. is a Mid Cap company incorporated in 2008 and has a market capitalization of Rs 7213.79 crore in the logistics sector. Ltd. Key product/revenue segments include Freight and Demurrage for the year ending 31-Mar-2022.

Finance

For the quarter ended 30-09-2022, the company posted a standalone total revenue of Rs 312.17 crore; Last quarter’s total revenue was Rs 292.37 crore, up 6.77% and 13.19% higher than last year’s total revenue of Rs 275.80 crore. The company reported a net profit after tax of Rs 37.79 crore in the last quarter.

Investment Rationale
Various growth drivers (eg volume growth, cost efficiencies and price hikes) enabled the company to record 32% EPS CAGR till FY24E. It resumes coverage on TCIE at 40x FY24E EPS, valuing the stock at Rs2,200. The main risk to the paper is: delay in land acquisition or automation of sorting centres.


Promoter/FII Holdings
Promoters hold 66.69 per cent stake in the company as on 30-Jun-2022, while FIIs hold 1.89 per cent; DII owns 8.8 percent.

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