Buy TCI Express, target price Rs 819: ICICI Securities

ICICI Securities has maintained buy rating on TCI Express and revised target price to Rs 819 from Rs 922. The stock ended up 1.14 per cent at Rs 614.25 on Tuesday while the BSE Sensex closed 190.10 points up (-0.60 per cent) at 31,371.12.

TCI Express Ltd., incorporated in 2008, has a market cap of Rs 2361.73 crore.

Investment Rationale


TCI Express' March quarter performance suffered due to the March 2020 portion of the ongoing lockdown, said ICICI Securities. The lockdown impacted topline by Rs 45 crore and Ebitda by Rs 14 crore to Rs 15 crore, the brokerage said. It would be positively surprised on realisation of management guidance given the current uncertainty, ICICI Securities said.

Financials


For the quarter ended March 31, 2020, the company reported standalone sales of Rs 237.94 crore, down -11.34 per cent from last quarter sales of Rs 268.38 crore and down -10.50 per cent from last year same quarter sales of Rs 265.84 crore. The company reported net profit after tax of Rs 19.01 crore in the latest quarter.

Promoter/FII Holdings
Promoters held 66.91 per cent stake in the company as of March 31, 2020, while FIIs held 2.66 per cent, DIIs 8.28 per cent and public and other 22.15 per cent.