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 Polycab India
FY2021 fetched Polycab India twin benefits - improving businesses and a stronger balance sheet, though H1 was affected by COVID-19. Polycab’s market share in the C&W segment rose by over 200 bps to 20-22% in FY2021 while FMEG portfolio saw growth & market share gains across the board. Net cash surplus too rose significantly. Company’s strategy for both B2B and B2C segments eyes a revenue of Rs. 20,000 crore by FY2026 through cementing leadership in C&W segment and fast-growing consumer electrical business.
Outlook
We retain a Buy on Polycab with a revised PT of Rs. 2,375, given a strong earnings growth trajectory over FY2021-FY2023.
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