- TCI express is involved in cargo distribution with greater emphasis on the burgeoning e-commerce business

- Macroeconomic slowdown impacted volume growth in 9MFY20 which grew at 3.5% YoY

- TCI’s upcoming large automated sorting centres will improve efficiency over the medium term

- It will benefit from

* Improving surface express efficiencies (TCIEXP added 57 branches in 9MFY20 to its network of 28 sorting centres & 800+ branches)

* Vendors’ preference shifting from unorganised to organised service providers

* Ramp up in key industrial clusters cities

* Modal shift (air to ground) led tonnage growth

- EPS growth of 20% CAGR is expected through FY20-23E.

- On EV/OCF basis, TCIEXP trades at ~19x FY23E.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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