Buy TCI Express: target of Rs 1054: Sharekhan

Sharekhan's research repor on TCI Express

Q3 revenue is expected to grow in single digits, affected by Covid-led restrictions in key states such as Gujarat and Delhi. However, FY2021 and FY2025 guidance remain intact. Hugh growth opportunity in vaccine delivery as organised players such as TCI with a strong pan-India network are preferred. The final print from the government is yet to come. The company may look at outsourcing or servicing through own network. Expansion of sorting centres is on track, with Pune and Gurgaon expected to be completed by Q3 and Q4, respectively. Expansion would aid in reducing turnaround time, effectively increasing capacity.

Outlook

We retain our Buy rating on TCI Express Limited (TCI) with a revised PT of Rs. 1,054, believing it to achieve its higher-than-industry growth rate led by strong growth opportunities ahead.

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