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 TVS Motor Company
Q4FY2021 results beat our expectations, as the rise in EBITDA margins was higher than estimates. TVS Motors (TVSM) to benefit from a sharp recovery in domestic two-wheeler demand in FY2022E, driven by strong rural sentiments and increased preference for personal transport. Moreover, TVSM’s strong foothold in export markets is likely to keep overall sales robust going forward. Aggressive product launches, forays into new markets and investments in newer and cleaner technologies would drive growth.
Outlook
The stock trades below its historical average at P/E multiple of 22.5x and EV/EBITDA multiple of 12.0x its FY2023 estimates. We maintain Buy rating on the stock with an unchanged PT of Rs. 688.
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