The year 2021 has delivered a huge number of multibagger stocks. Shares of TCI Express Limited TCIE have doubled investors' money so far in 2021. In comparison, the Nifty 50 index rose over 30 per cent and the S&P BSE Sensex index gained over 28 per cent.
This multibagger stock has surged from the Rs 942.65 mark to touch Rs 1,900. It has gained 101.5 per cent since the beginning of this year and has risen 135 per cent in the last one year.
The stock rose 17 per cent to hit an all-time high of Rs 1,900 on the Bombay Stock Exchange BSE It ended 12.68 per cent higher at Rs 378.60 against the previous close of Rs 336. Market cap of the firm rose to Rs 6966.6 crore. The shares are higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
According to Mr. Manoj Dalmia, Founder and Director of Proficient Equities Limited, Aggressive traders can buy the stock at current levels. On the other hand, Defensive traders can buy 50% quantity at the current levels and wait for a small retracement.
He stated that the company has a fundamentally strong business model and the management is confident on the recovery of business activity. The stock is good for long-term investment and can reach Rs 2,100 mark in the near term.
Motilal Oswal believes that TCIE is well-positioned to capitalize on the growth opportunity in the Express industry. With a pick-up in TCIE's volumes and improvement in efficiency on the back of its investments in sorting centres and automation, we expect the EBITDA margin to increase to 19% in FY 24 E from 16% in FY 21, resulting in 26% EBITDA CAGR over FY 21 - 24 E.
We maintain our estimates for TCIE and expect volumes to pick up as manufacturing activity improves. This will lead to 19% revenue CAGR for the company.
company over FY 21 - 24 E. We retain our estimates for FY 22 E 23 E and maintain our 'Buy' rating on the stock, the brokerage house added.
The company reported a standalone profit of Rs 34 crore for the quarter ended September 2021 compared with a profit of Rs 23 crore in the year-ago period. Revenue from operations grew 28 per cent to Rs 273 crore in the September quarter against Rs 212.95 crore a year ago.
Looking ahead, the recently launched 'PM Gati Shakti National Master Plan' by our Prime Minister for multimodal infrastructure connectivity to economic zones is designed to include projects under existing Bharatmala, Sagarmala, Udaan, expansion of railway network, inland waterways is expected to aid in seamless movement of goods and improve the ease of doing business, said Mr. Chander Agarwal, Managing Director, TCIE.
This new initiative coupled with strong pick-up in economic activities, declining festive season, increasing demand from the rural areas due to longer than expected monsoons, increasing vaccination and increasing covid cases, will drive demand in the upcoming quarters, Agarwal added.