Multibagger Alert: This logistics company has given returns of 116% in the past year!

Multibagger Alert: This logistics company has given returns of 116% in the past year!

by 5paisa Research Team Last Updated: Dec 14, 2022 - 03:16 am 38.4k Views
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The company remains optimistic about recovery and expects to gain market share going ahead.

Express logistics company, TCI Express Limited has given investors stellar returns of 116.02% over the last year. The share price of the company stood at Rs 907.2 on February 02, 2021, and since then, it has more than doubled investor wealth.

TCI Express Limited operates as an integrated supply chain and B2B logistics solutions provider. The company’s focus is on express cargo distribution with greater emphasis on the burgeoning e-commerce business. It offers transportation, storage, warehousing, and support services for transportation. Around 55% of its revenues come from sectors like auto ancillary, pharma, engineering.

In the quarter ended December 2021, TCI Express reported broadly in-line performance. Consolidated revenues stood at Rs 286.92 crore, up 9.30% YoY and 4.93% QoQ. The topline growth was led by volume growth of 7.5% YoY and pricing-led growth of ~2.5% YoY. The demand environment was fairly well during Q3 barring November, which moderated. On the operational front, the company reported a profit of Rs 47.19 crore, up 4.06% YoY and 4.26% QoQ, and the corresponding margin contracted to 16.45% from 17.28% in the year-ago period. The steep price increase in diesel prices during October was not passed on to the end consumers, thus dragging down the operating margins during the quarter. PAT was up 4.52% YoY and 3.20% QoQ to Rs 35.13 crore during the quarter and the PAT margin stood at 12.24%. The company remain optimistic on demand and has guided to close FY22 with a 30-35% revenue growth and 35-40% net profit growth.

TCI has also launched three new value-added services called Cold Chain Express (catering to pharma and frozen food packaging companies), C2C Express (first to launch customer-to-customer service with multi-location pick-up and delivery) and Rail Express (to cater to B2B air cargo business). The company remains optimistic about recovery and expects to gain market share going ahead.

The Indian logistics industry is among those that has seen a strong revival post the Covid-19 pandemic which had a severe impact on the overall trade environment both globally and domestically. There are clear signs of revival in this industry seen by indicators such as the e-way bill generations, FASTag collections, Indian Rail volumes, and domestic port volumes. Domestic logistics players such as TCI express have been able to improve business owing to user industries preference towards credible supply chain management in wake of the impact of COVID on supply chain operations.

At 1.15 pm on Thursday, the stock of TCI Express was trading at Rs 1952.90, down by 0.35% or Rs 6.85 per share on BSE. The 52-week high of the scrip is recorded at Rs 2,570 and the 52-week low at Rs 807 on the BSE.

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