Logistic Sector Midcap Stock Gets Buy Call, Stock Rallies 5.08%, Board Recommends 100% Dividend

Motilal Oswal in a recent report initiates Buy on TCI Express Ltd. (TCIE) with a target price of Rs. 1,780 apiece. The stock has the potential to give up to 12% decent return considering the given target price and the current market price of the stock.

Recently, TCIE in a Board meeting held on May 26, 2023, recommended a final dividend of 100% i.e. Rs. 2/share for the financial year 2022-23. TCIE is a logistic sector midcap stock. It has a market valuation of Rs. 6,113.01 crore.

Dividend

According to the regulatory filing by the Board of Directors of TCI Express Ltd., "Recommended a final dividend of 100% i.e. Rs. 2.00 per equity share for the financial year ended March 31, 2023, subject to the approval of the shareholders at the 15th Annual General Meeting of the Company to be held for the financial year 2022-23. The dividend would be paid within 30 days from the date of declaration at the said ensuing Annual General Meeting. The date of Annual General Meeting Record date/book closure (as the case may be), would be intimated in due course."

Valuation & View

According to the brokerage firm, TCIE's focus on the high-margin B2B Express segment provides a strong foundation for profitability and growth. Its expansion of branch network in key markets with a specific focus on the SME segment presents an opportunity to capture additional market share. Further, the addition of new automation sorting centers is likely to improve its operational efficiency and reduce turnaround time, thereby enhancing its competitiveness in the market.

"We expect TCIE to clock 11% volume CAGR and revenue/EBITDA/PAT CAGR of ~13%/19%/18% over FY23-25. Reiterate BUY with a TP of INR1,780 (based on 35x FY25E EPS)' the brokerage has said.

Stock Outlook

The current share price of TCIE is Rs. 1,595.60 apiece on NSE, jumped 5.08%. Its 52 week high is Rs. 2,013 apiece and . its 52-week low is Rs. 1,374 apiece, respectively. It has given 4.11% positive return in 1 week. In the past 1 month, it jumps 8.27%. It gave 0.95% positive return in 1 year. In 3 years, it gave 147.36% positive return. In 5 years, it gave 195.1% positive return.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.