Buy TCI Express; target of Rs 1400: Motilal Oswal

Motilal Oswal is bullish on TCI Express has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated August 13, 2024.

Broker Research

August 16, 2024 / 13:50 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on TCI Express

TCI Express (TCIE)’s 1QFY25 revenue decreased 4% YoY to ~INR2.9b (7% below our estimate), while volumes declined 2% YoY. Volumes were temporarily hit by the general elections. The quarter also saw several challenges, such as higher costs from multimodal enhancements, and high inflation affecting customers. Volumes stood at 0.23m tonnes (-2% YoY), while realization was INR12,467 per ton (down 2% YoY). EBITDA came in at INR327m with a margin of 11.2% (vs. our estimate of 14.2%). Margin was hurt by the weakness in volumes handled, high charges by airport operators, and increased costs from multimodal enhancements. In line with weak operating performance, TCIE’s APAT dipped 31% YoY to INR223m (vs. our estimate of INR310m).

Outlook

We expect TCIE to clock a 9% volume CAGR and revenue/EBITDA CAGR of 10%/13% over FY24-26. Reiterate BUY with a revised TP of INR1,400 (based on 32x FY26E EPS).

For all recommendations report, click here