TCI Express - Result Update - ICICI Securities

TCI Express' (TCIEL) revenue saw strong sequential improvement in revenues (although YoY still not normalised). MoM also the momentum remained on a positive trajectory, brought about by a broad-based recovery across sectors. EBITDA margins expanded 1300 bps QoQ (389 bps YoY) to 15.3% mainly due to cost control measures employed by the company, which is evident in lower employee, other expenses and higher gross margins. Subsequently, absolute EBITDA came in at Rs. 33 crore vs. Rs. 2 crore in Q1FY21 and Rs. 31 crore in Q2FY20. Buoyed by the strong operating performance, PAT came in at Rs. 24 crore vs Rs. 1 crore in Q1FY21 and Rs. 26 crore in Q2FY20 (YoY de-growth due to lower tax rate in the base quarter).

Valuation & Outlook

The management's singular focus on carrying profitable shipments in the B2B segment along the surface route, has consistently led to stable operational performance, even amid lower volumes scenario (as seen in H1). Low leverage, a robust growth trajectory and high core return ratios (FY22E RoCE at 28%, healthy FCF yield), position TCIEL as one of the preferred picks in the logistics space. We value TCIEL at 33x P/E with a target price of Rs. 900 and maintain our BUY recommendation.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TCIExpress_Q2FY21.pdf

Shares of TCI Express Ltd was last trading in BSE at Rs.788 as compared to the previous close of Rs. 767.75. The total number of shares traded during the day was 254 in over 98 trades.

The stock hit an intraday high of Rs. 794.35 and intraday low of 775. The net turnover during the day was Rs. 199915.

Source : Equity Bulls

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