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.
Anand Rathi's research report on AIA Engineering
Higher realisations led to AIAE posting a better Q1 due to the pass-through of higher RM and freight costs. On the other hand, sales volumes (60,318 tons) were below our estimate, largely from lower mining volumes because of no exports to Canada. Also, travel restrictions continue to take a toll on marketing, leading to delayed customer additions and order bookings. From a long-term perspective, we expect AIAE to benefit from the lower penetration of high-chrome grinding media, its large global market-share and net-cash balance-sheet.
Outlook
With lower-than-expected sales volume, we trim our volume estimate but raise our realization estimate based on higher costs being passed on. With this, and the recent fall in stock price, we upgrade our rating to a Buy with a higher TP Rs2,283.
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