Buy Zinka Logistics Solutions, target price Rs 590: JM Financial

JM Financial has a Buy call on Zinka Logistics Solutions with a target price of Rs 590. The current market price of Zinka Logistics is Rs 453.4. The time period given by the analyst is a year when Zinka Logistics Solutions price can reach defined target. Zinka Logistics, incorporated in 2015, is a Small Cap company with a market cap of Rs 7921.21 crore, operating in the Logistics sector.

Zinka Logistics Solutions' key products/revenue segments include Truck Operator Services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 136.76 crore, up 11.03% from last quarter Total Income of Rs 123.18 crore and up 47.54% from last year same quarter Total Income of Rs 92.69 crore. The company has reported net profit after tax of Rs 280.17 crore in the latest quarter.

The company's top management includes Mr.Rajesh Kumar Naidu Yabaji, Mr.Chanakya Hridaya, Mr.Ramasubramanian Balasubramaniam, Mr.Anand Daniel, Mr.Kaushik Dutta, Mr.Niraj Singh, Ms.Hardika Shah, Mr.Rajamani Muthuchamy. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-03-2025, the company has a total of 18 crore shares outstanding.


Investment Rationale
BlackBuck's (parent company Zinka Logistics Solution) revenue has grown at FY22-25 CAGR of 53%, roughly 3.5x in 3 years. Moreover, the company turned adjusted EBITDA profitable in H2FY24 and has maintained the trajectory to turn PAT positive this quarter. JM Financial forecasts that the company to maintain the momentum with 33%+ FY25-27 Revenue CAGR and Adj. EBITDA margin reaching 39%, effectively delivering incremental EBITDA margin of 58% over the coming 2 years. They value the company using DCF-based valuation, resulting in Mar?26 target price of Rs 590, 28% upside at CMP. The brokerage maintains ?BUY? and believe this to be a robust compounding story with significant optionality if the company manages to crack the large opportunities in Load Brokerage or Vehicle Financing businesses.

Promoter/FII Holdings
Promoters held 27.7 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.59 per cent, DIIs 10.26 per cent.