Stock to buy: Mehta Equities predicts 26% upside in this small-cap logistics share

Sindhu Trade Links Limited share price has the potential to rally up to ₹27 apiece from the current level of ₹21.5 apiece, as estimated by domestic brokerage firm Mehta Equities in its latest note. The target price also indicates an upside gain of 26% for investors.

The brokerage believes the stock offers a long-term growth opportunity and has advised investors to accumulate the stock on dips, noting that the business offers a steady, infrastructure-linked compounding opportunity with moderate cyclicality.

“The stock is best suited for investors with a long-term horizon, comfort with regulatory and commodity-linked risks, and a preference for asset-backed, contract-driven businesses,” the brokerage said.

Five key factors drive the brokerage’s optimistic outlook

In its note, the brokerage highlighted the following five key factors underpinning its positive outlook on the stock.

Core Exposure to India’s Structural Coal & Power Demand: Sindhu’s logistics and transportation business is directly linked to Coal India and domestic coal evacuation, where Sindhu’s fleet of 200+ tippers excels.

This core segment offers high-volume, recurring contracts with Coal India, ensuring stable cash flows amid the energy security push.

Diversification & Expansion Strategy: Sindhu has articulated a long-term diversification strategy approved in July 2025, aimed at expanding into critical minerals and metals, aligned with India’s National Critical Mineral Mission and rising global demand for strategic resources, which the brokerage believes enhances long-term growth optionality and reduces reliance on coal-linked activities.

Long-Term Contracts Offer Revenue Visibility and Downside Protection: As a key logistics partner to Coal India, Sindhu benefits from contract-based operations, which reduce revenue volatility compared to spot-based transport operators. This contractual nature supports predictable cash flows, making the business more suitable for moderate-risk investors seeking stability within a cyclical sector.

Infrastructure Capex Tailwinds: The government’s ₹11 lakh crore infrastructure spend in FY26 boosts mining support and related operations, leveraging Sindhu’s established Gurugram base and execution track record. Moderate leverage allows the company to capitalize on these opportunities without excessive debt risk.

Integrated, In-house Engineering Depth and Operational Excellence: Management has been investing in automated manufacturing and distribution to support FMCG scale, with the Elitecon manufacturing platform forming the core of its long-term investment case by offering cost and scalability advantages.

The 40,000 sq ft automated Nashik facility, with a capacity of around 80 million cigarette sticks per month, enables rapid volume ramp-up, product customization, and consistent quality without proportional increases in fixed costs. This integrated, in-house capability across cigarettes, sheesha, flavored tobacco, and private-label FMCG enhances operating leverage, improves margin control, and strengthens bargaining power with B2B clients.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.