Prabhudas Lilladher initiates coverage on TCI Express, Mahindra Logistics and Delhivery with positive view
₹1430 and ‘Accumulate’ rating on Mahindra Logistics and Delhivery with a target price of ₹500 and ₹510. Also read: Technical pick: Anand Rathi forecasts near-term upside potential for this small-cap stock “The logistics sector is mainly dominated by the movement of goods via roads (~71% of volumes and ~65-70% of transportation revenues). Overall, est.
logistics gross spends (~US$435bn) form 13% of GDP, of which direct spend is 51% of the pie," the firm said in a report. TCI Express is building its capacities for the next decade and an uptick in volumes on expanded asset base (automation of existing assets) will likely maintain return ratios at attractive levels. It posted a decline in revenue by 0.81 per cent in Q3 FY24 compared to the same period last year.
However, the profit showed a slight increase of 0.53 per cent YoY. The company also witnessed a decline in revenue by 2.54 per cent and a drop in profit by 9.53 per cent compared to the previous quarter. Meanwhile, Mahindra Logistics has been steadily making inroads with several corporates and making efforts to outsource their logistical requirements.
Its endeavour is being helped by changing customer behaviour, regulatory environment and rising competition with rapidly scalable brands, it said. Also read: Multibagger Stock: Polycab India jumped over 270% in 3 years, rallied 725% in 5 years; should you invest? It disclosed a loss for the quarter ended on December 31, 2023 for the fourth consecutive quarter, attributed to increasing expenses and continual downturn in its express cargo segment due to intense competition. The company reported a consolidated net loss after tax amounting to ₹174.1 million ($2.1 million), a significant contrast to the profit of ₹13.9
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