ICICI Direct is bullish on TCI Express has recommended buy rating on the stock with a target price of Rs 850 in its research report dated May 09, 2020.
ICICI Direct's research report on TCI Express
TCI Express (TCIEL) reported revenues, profitability below I-direct estimates. Revenue de-grew 10.5% YoY driven by 11.5% volume de-growth amid a challenging business environment. EBITDA margins fell 149 bps to 11.2% mainly due to lower operating leverage (employee & other expense). Hence, absolute EBITDA de-grew 21% YoY to Rs 27 crore. PAT de-grew 12.5% YoY to Rs 19 crore, mainly due to a below expected operational performance (negated up to a certain limit by lower tax rate of 25.5% vs. 33.8%).
Outlook
We value TCIEL at 29x P/E with a target price of Rs 850 and a BUY recommendation.
For all recommendations report, click here
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