Buy TCI Express; target of Rs 1900: Motilal Oswal

Motilal Oswal is bullish on TCI Express recommended buy rating on the stock with a target price of Rs 1900 in its research report dated August 04, 2023.

Broker Research

August 08, 2023 / 15:32 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

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