Sharekhan's research report on TCI Express
Q1FY2025 revenues lagged estimates, led by continued dip in volumes y-o-y. Negative operating leverage and lower truck utilisation led to a higher miss on OPM and net earnings.The company would be eyeing double-digit revenue growth for FY2025 as H2FY2025 is expected to see healthy growth partly aided by a low base. It expects OPMs to revert to over 14% in the near term.Capex plan of Rs. 500 crore over FY2023-FY2027 remains on track, with the balance capex of Rs. 329 crore to be incurred during FY2025-FY2027.
Outlook
We retain a Buy on TCI Express with a revised PT of Rs. 1,350, factoring in a downward revision of estimates and expecting a revival in growth from H2FY2025.
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