Motilal Oswal Assigns Buy On Midcap Logistics Stock, Shares Likely To Surge, Soars 200% In 5 Yrs

Motilal Oswal Financial Services has come up with a Buy recommendation for TCI Express Ltd. (TCIE), a logistics sector midcap stock. The brokerage assigned a Target price of Rs. 1,850 apiece on the stock of TCIE with a positive outlook. According to the given target price, the stock can give a decent return of up to 11% if purchased at the current market price.

Focus on profitable growth in B2B; healthy ramp-up in new segments

According to Motilal Oswal Financial Services, TCIE's strategic emphasis on the high-margin B2B Express segment serves as a robust platform for both profitability and growth. The expansion of its branch network in key markets, with a focus on the SME segment, presents TCIE with an opportunity to gain market share. Additionally, the introduction of new automated sorting centers should enhance TCIE's operational efficiency and reduce the turnaround time, thereby bolstering its competitiveness.

The broekrage said, "We expect TCIE to clock an 11% volume CAGR and revenue/EBITDA/PAT CAGRs of ~13%/21%/21% over FY23-25. Reiterate BUY with a TP of INR1,850 (based on 35x FY25E EPS)."

According to Broekrage, the Key downside risks to the But call are: 1) Any major slowdown in the express logistics business and 2) Any significant market share loss due to aggressive competition."

Stock Overview

On Monday, the stock of TCIE closed 1.90% high at Rs. 1,680.15 apiece on NSE. It jumped 3.64% in the past 1 week. While in 1 month it jumped 11.13%.

It declined in 1 year, giving 0.13% negative return. However, it gave 155.98% positive return in 3 years and 200.38% positive return in 5 years.

The stock traded the 52-week high on 20 September 2022 at Rs. 2013 apiece, while the 52 week low on 25 April 2023 at Rs. 1374 apiece. It has a market valuation of Rs. 6,436.93 crore.

Disclaimer - This Logistics stock has been picked from the brokerage report of Motilal Oswal Financial Services. 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.