Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Markets / Stock Markets/  Prabhudas Lilladher initiates coverage on TCI Express, Mahindra Logistics and Delhivery with positive view
BackBack

Prabhudas Lilladher initiates coverage on TCI Express, Mahindra Logistics and Delhivery with positive view

The brokerage firm has assigned ‘buy’ rating TCI Express with a target price of ₹1430 and ‘Accumulate’ rating on Mahindra Logistics and Delhivery with a target price of ₹500 and ₹510.

Logistics sector of IndiaPremium
Logistics sector of India

Brokerage firm Prabhudas Lilladher has initiated the coverage on logistics sector with a positive view, adding that the industry is poised for a huge growth led by rising GDP & online retail penetration, increasing complexity in supply chains and distribution model, improvement in road infrastructure, and greater adoption of technology.

The brokerage firm has assigned ‘buy’ rating TCI Express with a target price of 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 million recorded in the same period last year.

On the other hand, The brokerage firm Prabhudas Lilladher expects Delhivery to grow at 18% CAGR over FY24-26E, led by focus on cost control, unique shared infra model (B2B+B2C), higher investments in automation, and superior tech stack.

Also read: 200% return in 1 year: Multibagger smallcap hits 20% upper circuit on 233-crore govt order; do you own?

It reported a net profit of 11.7 crore in the October- December 2023 quarter. The company's consolidated net revenue increased by 13% QoQ to 2,194 crore against 1,941 crore in the previous quarter. Its net consolidated revenue increased 20.32% YoY against 1,823 crore in the year-ago period.

 

 

 

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 16 Apr 2024, 08:37 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started