TCI Express - On Twin Planks Of Automation, Network: ICICI Securities

ICICI Securities Report

We met the management of TCI Express Ltd., to understand the company’s future prospects and expansion plans. Key takeaways:

1. Focused solely on business-to-business express delivery segment;

2. scaling up branch network across India;

3. automating 10-12 sorting centres (comprising 80% of the business) in order to reduce cost; and

4. endeavouring to maintain consistent dividend payout to shareholders.

In our view, TCI Express stands at a vantage point with progressive automation of service centres ushering in cost efficiencies and opening of new (own) branches expanding the reach.

As a result, we expect Ebitda margin to expand to 17.5% in FY24 (FY22: 16.2%) and return on equity to sustain between 23-24%. Taking cognizance of higher margins, we are raising valuation multiple to 42 times (earlier 40 times).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.