An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
Sharekhan's research report on ICICI Lombard General Insurance
ICICI Lombard General Insurance (ILGI) reported steady numbers for Q4FY2021. Operational performance was largely in-line, helped by lower combined ratios. The combined ratio has been normalizing and stood at 101.8% for Q4, but on FY2021 basis, it stood at 99.8%, lower than 100.4% in FY2020. We expect the focus on diversifying into tier 3 & 4 cities is positive, and will help the company ride on growth drivers of diversifying product mix, multi-channel distribution network, backed by robust risk selection and strong investment return.
Outlook
We retain Buy with unchanged price target of Rs 1750 with reasonable valuations at 38.6x / 31x FY2022E / FY2023E EPS.
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