Accumulate TCI Express; target of Rs 1250: Prabhudas Lilladher

Prabhudas Lilladher's research report on TCI Express

TCI Express (TCIEXP) Q1FY25 cons revenue de-grew 3.9% YoY to Rs2.9bn (PLe: Rs3.1bn), led by total volume of 2.35 lakh ton, which was lower by 2.1% YoY. Cons EBITDA de-grew 28% to Rs0.34bn. EBITDA margins contracted by 380bps YoY to 11.4%, driven by a decline in fleet utilization (down 150bps to 82%) caused by reduced industry demand amid elevated inventory levels. Consolidated PBT/PAT declined by 28.9%/28.5% to Rs0.31bn/Rs0.23bn.

Outlook

We change our stance from ‘BUY’ to ‘Accumulate’ with a TP of Rs1,250 based on near- and medium-term uncertainties in uptick in express volumes and higher competitive intensity in the segment.