Motilal Oswal's research report on TCI Express
TCI Express (TCIE)’s 1QFY24 revenue grew 5% YoY to ~INR3b, largely in line with our estimate. The growth was slow due to weak macroeconomic environment and TCIE expects it to ramp up in subsequent quarters. Volume in 1QFY24 stood at 0.24m tonnes (up 4% YoY), while realization was INR 12,703 per ton (+2% QoQ). EBITDA for the quarter stood at INR464m with a margin of 15.2% (vs. our estimate of 15.6%). PAT stood at INR323m (vs. our estimate of INR 343m) with a margin of 10.6%. The outlook remains bright and we have kept our estimates largely unchanged. We expect TCIE to clock volume/revenue/EBITDA CAGR of 11%/13%/21% over FY23-25. This growth will be facilitated by the implementation of automation and the expansion of the branch network, leading to enhanced operational efficiencies.
Outlook
An estimated capex of INR 5b is foreseen over FY23-FY28, toward proprietary sorting centers and a corporate office in Gurugram, Haryana. We reiterate our BUY rating with a TP of INR1,900 (based on 36x FY25E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.