Motilal Oswal's research report on TCI Express
TCIE has established itself as a pioneer in the Express Logistics sector, with a strong nationwide presence in India. Its extensive Hub and Spoke infrastructure comprises over 950 owned centers, effectively serving a vast network of more than 60,000 locations across the country. TCIE has a well-diversified clientele and places significant emphasis on the high-margin B2B sector, which accounts for 95% of its business. TCIE’s key strengths lies in its loyal customer base, with ~50% of its revenue from SMEs. This loyal customer segment contributes significantly to the company's overall success and growth. The newly developed Gurgaon sorting centre will implement a fully automated loop sorting system for oversized freight.
Outlook
We expect TCIE to clock 11% volume CAGR and revenue/EBITDA/PAT CAGR of ~13%/21%/21% over FY23-25. We reiterate our BUY rating with a TP of INR1,900 (based on 36x FY25E EPS).
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