Buy Zinka Logistics Solutions; target of Rs 650: ICICI Securities

ICICI Securities's research report on Zinka Logistics Solutions

In Q1FY26, Blackbuck’s core business growth accelerated to ~40% YoY vs. I-Sec est. of 33% YoY. This was driven by higher uptake in value-added services in payments and growth in telematics (regulatory tailwinds). Power users (using >2 services) grew ~5% QoQ despite adverse seasonality which reinforces our thesis on large headroom of cross/upselling (link). Additionally, Blackbuck ramped up the transaction driven platform ‘Superloads’. The product is at a nascent stage and has been rolled out across two cities thus far. We estimate GTV from Superloads at ~INR 130mn which implies gross margin (take rate) of ~6-7%, in line with management guidance. Management has alluded that growth in this business will not exceed gross profit. Reiterate BUY with TP at INR 650.

Outlook

We maintain BUY on Zinka with three-stage DCF-based TP of INR 650.