TCI Express Ltd. share price target

TCI Express’ (TCIE) Q3FY23 performance undershot our estimates by 13% primarily on higher cost though revenue was in line. Key points: 1) Weaker-than-expected festive season led to lower utilisation levels; 2) EBITDA margin was down 196bps QoQ to 14.7%- at a similar level as Q1FY23 owing to higher other expenses.

We met the CFO of TCI Express (TCIE), Mr. Mukti Lal (on Dec 20th, 2022), to understand the company’s future prospects and expansion plans.

TCI Express (TCIE) posted its all-time high quarterly revenues at Rs3.1bn (up 13% YoY) primarily on better volumes.

The Express Logistics industry is expected to clock robust growth, with: a) growing demand for faster delivery, b) improved road connectivity, reducing the turnaround time, c) growth in e-commerce, and d) reforms like GST....

What should investors do? TCI has been consistently delivering strong profitable growth (within a competitive environment), helped by its infrastructure of owned IT enabled branches (provides better execution and customer feedback loop)....